Bitcoin Volatility Dips Amidst Market Calm

Data from Coinglass reveals that Bitcoin’s volatility has decreased for two consecutive days, reaching a level of 2.54%. This decline in volatility comes as no surprise, as it is often associated with speculative trading and retail investor fear of missing out (FOMO). A decrease in volatility may suggest a shift away from short-term speculation, indicating possible market consolidation or a ‘cooling off’ period. Further contributing to this calmer trend are external factors such as stable macroeconomic conditions including inflation expectations, interest rate changes, or geopolitical risks. When these influential factors stabilize, Bitcoin’s volatility tends to follow suit.