The current period's BTC actual volatility averages less than 50%, far lower than previous bull runs.

Gate News bot message, based on data tracked by Glassnode, during the current bull run cycle, the three-month rolling actual volatility of Bitcoin has averaged less than 50%, significantly lower than the levels of 80% to 100% seen in previous bull runs.

TradingView data shows that the 30-day implied volatility tracked by Volmex's BVIV index is exhibiting the same trend, as the index has been in a downward trend. Implied volatility refers to the expected price fluctuations over a specific period and is a forward-looking indicator.

This stability may stem from Bitcoin's growing market capitalization, which inadvertently promotes market stability and increases the participation of institutional investors through ETFs and derivatives.

Glassnode explained the decrease in volatility by stating: "Bitcoin's market capitalization has exceeded $2 trillion, ranking it as the seventh largest asset globally. With the increase in liquidity and asset valuations reaching such high levels, the capital required to significantly drive asset prices will increase dramatically."

It added: "In addition, the launch of the U.S. spot ETF products, along with increased regulatory transparency, has changed the composition of the investor base, giving experienced institutional investors and capital the opportunity to invest in Bitcoin for the first time." Glassnode stated: "We have observed that, compared to previous bull runs, the current bull run has seen smaller declines, with the declines in the current cycle typically being less than 25% of local peaks, and only twice have the declines exceeded 30%."

Analysis suggests that this change in nature is again related to institutional participation, lower leverage rates, and excessive speculation in the market.

Source: CoinDesk