Bitcoin’s Volatility Inch Closer to Stability

Bitcoin has experienced significant growth in early 2024, uplifting investor sentiment. However, the current period is marked by increasing stability in its volatility.

Bitcoin’s Volatility Inch Closer To Stability_65d5d20b95100.webp

February has proven to be a triumphant month for Bitcoin. Even the most optimistic investors likely did not anticipate Bitcoin surpassing the $50,000 milestone so swiftly.

Market sentiment remained buoyant, barely flinching ahead of the January CPI report. Comparisons to the 2021 bull run were drawn, fueling a fresh wave of predictions for Bitcoin to reach the $100,000 mark.

Two notable developments underscored this optimism. Firstly, the widespread announcement of the Bitcoin ETF, a gateway for institutional investors, saw it amass $10 billion in total assets under management within just a month of trading. Secondly, the S&P 500, comprising the top 500 technology and financial giants, achieved a historic milestone, reaching 5,000 points. This mirrors investors’ optimistic outlook on financial markets.

Bitcoin ETF
Bitcoin ETF

Analyzing the actual volatility of Bitcoin in recent years reveals a narrow range and a cautious approach that not only reflects the current environment but also signals progress towards stability, in stark contrast to the intense fluctuations of previous bull cycles.

In 2021, the actual volatility of BTC consistently oscillated above 100% compared to the previous week, nearing its peak at 140%. However, over the past year, this volatility has generally been maintained below 60%.

Related: Bitcoin to Follow Cycle Towards All-Time High (ATH)

Ethereum, moving in parallel with BTC, follows similar patterns on a higher scale, with actual volatility reaching nearly 300% in May 2021. Nevertheless, over the past 12 months, it has consistently decreased below the 60% threshold.

There is still work to be done before we can label Bitcoin and Ethereum as assets with moderate volatility when compared to stocks like Apple. However, the actual volatility fluctuating within a moderate range is an optimistic signal indicating the increasing stability of the crypto market.

(100 votes)

5.0/5

(100 votes)

Latest

18 Wallets Dump 890 Million Tokens, Astra Nova Crashes 65%

News | Altcoin | Editor Choice

18 Wallets Dump 890 Million Tokens, Astra Nova Crashes 65%

After 18 wallets suddenly dumped 890 million RVV tokens worth over $10.6 million, the Astra Nova team was forced to launch an emergency token buyback program to calm the community.

Binance Deletes 600 Accounts For Exploiting Trading Bots

News | Editor Choice | Policy & Regulations

Binance Deletes 600 Accounts for Exploiting Trading Bots

Binance, the world’s largest cryptocurrency exchange, has taken a tough stance—blocking more than 600 user accounts accused of exploiting its Binance Alpha platform through coordinated automated bot activity.

Over $3 Million In Xrp Stolen, What Really Happened

News | Editor Choice | Policy & Regulations

Over $3 Million in XRP Stolen, What Really Happened?

An XRP investor in the U.S. has lost more than $3 million despite storing his assets in a cold wallet — a shocking incident that has shaken the crypto community and raised serious concerns about security vulnerabilities in so-called “safe” storage devices.

Ai Boom Propels Bitcoin Miners To 500% Gains, Outpacing Btc Itself

News | Bitcoin | Editor Choice

AI Boom Propels Bitcoin Miners to 500% Gains, Outpacing BTC Itself

AI-fueled revenues keep miners resilient — could that stability lift Bitcoin out of its October slump?

Bnb Plunges After Being Added To Coinbase’s Listing Roadmap

News | Altcoin | Editor Choice

BNB Plunges After Being Added to Coinbase’s Listing Roadmap

BNB’s price has tumbled sharply in recent days, despite the positive news that the token is set to be listed on Coinbase.

Screenshot 2025 10 20 091338