TL; DR
Full story
Can you feel that?
It’s creepy, right? The peace we experience.
We didn’t know Bitcoin had a ‘quiet’ attitude.
We’re used to it being almost permanently stuck in ‘as erratic as a five-year-old who just drank a liter of Coke’ mode – bouncing up and down and adding or wiping out billions to its total value every day.
But right now, the DVOL chart (which measures Bitcoin’s daily volatility) is at the bottom of a four-month decline – a time when the price of BTC has risen from ~$73k to ~$56.5k, and significantly increased. between these two points in the meantime.
This is what that indicates:
Investors are less panicky and therefore less likely to seek out protective hedged investments – for example, buy options that allow them to buy or sell Bitcoin at a certain price in the future (which tends to increase volatility).
Good news:
Violent downward movements are less common at these times.
Bad news:
Violent upward movements are less common at these times.
Better news:
This is part of the course of the financial markets. Investors tend to ‘sell in May and leave’ for the summer.
So that we can all enjoy this peace without afraid that the sky is falling.