On Sunday the 25th of December, 2020, William Clemente, Co-founder of crypto research firm Reflexivity, made a Tweet indicating that Crypto price volatility seems to be at an all-time low using a chart of the Bitcoin historical volatility index for visual representation.
Bitcoin's volatility is at an all-time low pic.twitter.com/sGOIC7cM6e
— Will Clemente (@WClementeIII) December 25, 2022
He added that the total crypto market cap had retraced the entirety of its gains from its 2017 highs and was now possibly testing those highs as support.
According to on-chain data, the Bitcoin market Volatility index continuously plummets even lower as Crypto researchers have been tracking historical Bitcoin volatility levels, and they have bottomed out.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD clinging to a tight trading range of about $16,800.
However, BTC has moved up to a five-day high of $16,895 during the Monday morning Asian trading session. There has not been any real momentum since the asset fell below $17K on Dec. 16, and it has flat-lined since.
Twitter users and BTC Holders are quick to point out that every time the price of BTC bottoms out, it usually is accompanied by a massive bullish rally, and the price reduction is all the incentives enthusiasts need to buy into Bitcoin.
Tweeting the popular sentiment that Hodlers are holding and weak hands have been shaken up. This would lead to a lot of settling and sell-outs.
Other analysts also confirmed the new low in Bitcoin volatility. The asset has traded between $15,700 and a little over $18K for the past six weeks and with most of the world in the holiday spirit, no one seems to be trading right now and market activity is unlikely to pick up again until next month.
Coiner-Yadox also tweeted in the early hours of Sunday that Bitcoin volatility appears to be lower than in 2018 just before the 6k break
Bitcoin failed to deliver a Santa rally for Christmas 2022, as the late days of December offered even more sideways price action for BTC. There has never been a quieter period for Bitcoin markets.
Most analysts are in agreement that markets are close to their bottom for this bear cycle. And Crypto enthusiasts are wondering if this could be the “calm before the storm” and what this new development could mean for the trading volume.
Fortunately, the volatility of BTC’s price has been seemingly stable recently. Thus, we watch in anticipation for BTC’s development in 2023.
