Bitcoin Volatility Hits Two-Year Low Amid Bullish Sentiments
- Bitcoin’s volatility near lows; bullish sentiment persists.
- Implied volatility at multi-year low impacts market perception.
- Institutional capital boosts market depth and stability.
Bitcoin’s implied volatility has hit near two-year lows, reported by
Glassnode on February 21. The data highlights a persistent bullish market sentiment despite reduced volatility, affecting how investors perceive market risks.
Lower Bitcoin volatility signals potential major market moves, influenced by increased institutional investments and funding rate shifts. Glassnode data confirms
historic lows, indicating a stable yet bullish market environment.
Bitcoin’s implied and realized volatility hit historic lows, as reported by Glassnode. The on-chain analytics firm noted a significant drop in Bitcoin’s 1-week realized volatility to 23.42%. Similar compressions historically precede major market movements, suggesting potential future price actions.
Bitcoin’s 1-week realized volatility has collapsed to 23.42%, nearing historical lows. In the past four years, it has dipped lower only a few times… Similar compressions in the past led to major market moves.
Institutional capital influx has enhanced market efficiency, particularly through arbitrage and derivatives activities. The annual average funding rate on Bitcoin perpetual swaps dropped to 0.0173% in 2024, compared to previous years. 71.4% of funding periods between 2016 and 2025 remained positive, indicating a persistently bullish outlook.
The effects are primarily observed in Bitcoin, though Ethereum and large-cap altcoins also experience similar, though less significant, volatility changes. This market trend underscores increased
market stability, largely attributed to institutional engagement.
Historical events, such as Federal Reserve interest rate cuts, have previously aligned with crypto bull runs. No recent authoritative statements focus directly on volatility, but Market dynamics and funding rates indicate that the crypto space remains optimistic.
Liquidity and volatility shifts suggest potential strategic adjustment opportunities for investors. Historical data and funding trends indicate bullish outcomes, impacting market players’ decisions. The stable yet dynamic landscape invites continued bullish speculation in cryptocurrency markets.
