Bitcoin 90-Day Volatility Falls to Record Low
U.S. spot bitcoin exchange-traded funds (ETFs) might have been the driving force behind a sharp drop in bitcoin’s volatility.
“The 90-day rolling vol is below 40 for the first time- it was over 60 when the ETFs launched,” said Eric Balchunas, Senior ETF analyst at Bloomberg.
“Since BlackRock filing Bitcoin is up like 250% with much less volatility and no vomit-inducing drawdowns,” he noted in another X post last week, adding that the flip side of that would be the unlikelihood of another “god candle.”
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ETFs have brought steady inflows from large institutional investors, leading to more consistent demand and creating a stable price floor that diminishes dramatic price swings.
Data from Bybit last month showed that bitcoin’s implied volatility also dropped as low as 28% in June, while realized volatility ranged between 22% and 25% – levels not seen in almost two years.
Even if bitcoin’s risk profile is changing, the same isn’t true for the wider crypto market. Ether’s volatility has remained significantly higher, even after the launch of spot ETH ETFs, suggesting that the effect is strongest where institutional ETF flows are largest.
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