Recent data from Coinglass shows that Bitcoin’s volatility has decreased for two consecutive days, reaching 2.02%. This marks a return to the low-volatility levels observed at the end of February this year. 🕵️♂️
High volatility in Bitcoin is typically linked to speculation and retail investor fear of missing out (FOMO). A decrease in volatility may indicate a shift away from short-term speculative trading, potentially leading to a period of market consolidation or calm.
Furthermore, Bitcoin price fluctuations are often influenced by macro factors such as inflation expectations, interest rate changes, and geopolitical events. As these external forces stabilize, Bitcoin’s volatility tends to decrease accordingly.