Bitcoin (BTC) Volatility Dwindles: ‘Boring’ Price Action Explained

Bitcoin has become significantly less volatile recently. This is evidenced by the absence of any sharp spikes in price movements in either direction since the completion of the fourth half.

This trend of decreasing volatility indicates maturity, according to experts.

Bitcoin is seeing signs of maturity

Over the past week, Bitcoin has seen a modest decline of just over 3%, with selling activity outpacing buying on almost all exchanges. According to the latest news from KAICO the findingsCumulative net trading volume for major Bitcoin trading pairs reached $518 million from June 10-14, with Binance and Bybit seeing the highest level of selling pressure.

Although Bitcoin saw price fluctuations as a result of last week's macroeconomic news, the digital asset appears to have achieved a new level of maturity in 2024, which can be seen in its decreasing volatility, Kaiko stated.

Bitcoin's 60-day historical volatility has remained below 50% since the start of 2024. This is in stark contrast to the massive volatility observed in 2023 when volatility exceeded 100%.

In 2024, BTC reached an all-time high in terms of volatility, but Caico said this peak was only 40% — far lower than the more than 106% volatility spike seen in 2021 when the asset recorded its highest price levels.

Even the launch of spot bitcoin ETFs in the US had a relatively weak long-term impact on volatility, according to the company's analysis.

“Although it is too early to suggest that this is the new normal, changes to Bitcoin market structure over the past year may help explain why price action has been relatively ‘boring.’” The US market closing now requires a larger share of volumes. Trading, as BTC liquidity becomes more concentrated around the East Coast trading window.”

Stronger selling pressure

Increased selling pressure compared to buying demand for Bitcoin has kept its price below $70,000.

In a statement to CryptoPotatoMatteo Greco, research analyst at Fineqia International, highlighted that the price decline over the weekend was influenced by higher selling volumes from miners affected by the third halving event that reduced block rewards from 6.25 BTC to 3.125 BTC.

Although the hash rate fell by only 4% after the halving, strong mining competition has forced miners to improve capital efficiency. This mainly refers to “strong competition in the mining sector, as companies are forced to find different sources of income to remain profitable and improve capital efficiency.”