Long-term bitcoin holders were unmoved during the recent correction, similar to previous turning points, according to Glassnode.
Bitcoin rode the roller coaster this week, but its overall volatility has been in decline.
Bitcoin’s struggle to retest a key resistance level at $60,000 has “dampened” market sentiment, said one trader.
Bitcoin may be building for a big move as price volatility hits four-month low.
The U.S. banking giant said the declining volatility of the cryptocurrency could boost its appeal to institutional investors.
The exchange is planning to roll out futures tied to the index soon. It's not a "fear gauge" but an "action gauge."
Historically, the implied volatility spread has proven a reliable indicator of upcoming shifts in market leadership.
Volatility is a measure of risk, and that's often measured in relation to returns. By that measure bitcoin is a beast so far this year.
"Falling implied volatility suggests that markets are expecting sideways price action," one analyst said.
With liquidity falling in the bitcoin market, smaller trades can have a relatively large price impact.
Bitcoin's market is over-leveraged now as the cryptocurrency continues its run higher.
Bitcoin set a new high above $50,000 after erratic trading earlier this week, though options markets are not anticipating a drawdown anytime soon.
The efficient market hypothesis butts up against bitcoin's volatile day while Bitcoiners show solidarity in hosting the white paper.
Global head of commodities research Jeff Currie believes the amount of institutional money in bitcoin needs to grow to mature the asset.
Peaking implied volatility spreads suggest the emphasis in the markets will shift to ether and other alternative currencies in the short term.