Bitcoin Volatility Currently Stands at 1.62%
BlockBeats News, July 5th, Bitcoin's volatility is currently at 1.62%, having previously dropped to 1.45%.
Over the past two months, Bitcoin has consistently fluctuated within a narrow range of $93,000 to $111,000, a stark contrast to its historical price trends. Market analysts attribute the decrease in volatility to multiple factors, with the increase in bullish option writing by Bitcoin holders being particularly key. Despite the decline in volatility, the Bitcoin perpetual contract funding rate remains positive, indicating that the market's bullish sentiment remains unchanged.
BlockBeats Note: High Bitcoin volatility is often associated with speculative trading and retail FOMO sentiment. A decrease in volatility may indicate a reduction in short-term speculators, with the market entering a consolidation phase or a "cooling-off period." Furthermore, Bitcoin price volatility is often linked to macroeconomic events such as inflation expectations, interest rate changes, or geopolitical risks. When these external factors stabilize, Bitcoin's volatility may decrease accordingly.
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