Data: Bitcoin volatility has dropped to a multi-year low, which may usher in short-term market conditions

According to a message from ChainCatcher, as reported by CoinDesk, analyst Van Strate stated that data shows both the actual and implied volatility of Bitcoin are near multi-year lows. The "Volatility Chaos Index" has reached one of its highest levels in recent years, which may trigger short-term trends.

Since the end of November, the price of Bitcoin has been fluctuating within a narrow range between 91,000 and 109,000 US dollars. Its volatility has significantly contracted. Glassnode data shows that the two-week actual volatility (annualized) measuring price fluctuations over the past two weeks has dropped to 32%, marking one of its lowest levels in many years. Meanwhile, the implied volatility for one-month options reflecting market expectations for future four-week fluctuations also fell below an annualized value of 50%, similarly at historical lows.