Too Quiet? Bitcoin Volatility Hits Record Low
Analysis
Price Impact
HighBitcoin's volatility hitting an all-time low is historically a precursor to significant price movements, often leading to new all-time highs, as described by fidelity digital assets. it's viewed as a 'coiled spring' effect.
Trustworthiness
HighThe analysis comes from fidelity digital assets, a reputable financial institution, and is based on historical market patterns and data.
Price Direction
BullishFidelity identifies this period of unusually low stability as a 'rare and historically bullish signal.' past instances of atl volatility have preceded ath prices (e.g., 2016 before 2017 bull run), suggesting the current stability is an accumulation phase building energy for a future rally.
Time Effect
LongThe historical examples show that low volatility periods act as a precursor, meaning the build-up of energy and subsequent price explosion tend to unfold over an extended period, not immediately.
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Cover image via www.freepik.com Read U.TODAY on Google News Fidelity Digital Assets has noted that Bitcoin's volatility has plunged to the lowest level ever. Advertisement "Realized volatility" measures how much an asset's price fluctuates over a specific period (in this case, one year). A score of 42% is exceptionally low for Bitcoin, which has historically seen annual volatility exceeding 100% or even 200% in its early years. In plain words, Bitcoin is currently "boring." This "uncharacteristic" calm suggests Bitcoin is losing its "casino" status. It is trading within a tighter range than usual, without the violent 20-30% daily swings that characterized previous cycles. HOT Stories Too Quiet? Bitcoin Volatility Hits Record Low Morgan Stanley Extends Huge Crypto Week with Wallet Announcement CNBC Names XRP ‘Breakout Trade’ of 2026, Bitcoin (BTC) Price Erases Latest Gains, Cardano (ADA) Sees 25,084% Surge in Activity — Crypto News Digest Morning Crypto Report: XRP Bulls Are Safe From Max Pain, Zcash (ZEC) Rockets 9,780% in Liquidation Imbalance as Core Team Exits, Binance Announces Gold and Silver Listings However, it is worth noting that volatility tends to be cyclical in financial markets. It transitions from periods of high turbulence to low stability. A drop to 42% indicates extreme compression, which is comparable to a spring being coiled tight. Advertisement A new all-time high? Fidelity Digital Assets has identified a rare and historically bullish signal: Bitcoin has become unusually stable. It illustrates a technical phenomenon where periods of all-time low (ATL) volatility (red bars) act as a precursor to all-time high (ATH) prices (green bars). For instance, the low volatility of 2016 preceded the 2017 bull run to $20,000. Advertisement The chart shows a fresh cluster of red bars appearing right now. Fidelity’s argument is that this current period of stability is a sign of accumulation that is building energy for a move to new highs. However, history might not necessarily repeat this time around. Bitcoin is currently trading at $90,789, struggling to recover from a recent drop. The cryptocurrency recently failed to surpass the $95,000 level. #Bitcoin Price Prediction