Data: Bitcoin volatility has dropped to a multi-year low, which may lead to a short-term market trend

ChainCatcher news, according to CoinDesk, analyst Van Strate stated that data shows the actual volatility of Bitcoin and the implied volatility are both near multi-year lows, and the "volatility chaos index" has reached one of its highest levels in recent years, which may trigger short-term trends.

Since the end of November, the price of Bitcoin has been oscillating within a narrow range of $91,000 to $109,000, with volatility significantly contracting. Glassnode data shows that the 2-week actual volatility (annualized) measuring the price fluctuations over the past two weeks has dropped to 32%, marking one of the lowest levels in years. Meanwhile, the 1-month options implied volatility, reflecting the market's expectations for volatility over the next four weeks, has also fallen below 50% annualized, similarly at a historical low.