The performance of Bitcoin (BTC) and the major altcoins in Q3, 2023, will be mostly influenced by unprecedentedly low volatility, notwithstanding the general decline in cryptocurrency markets brought on by a new round of regulatory attacks.
Bitcoin (BTC) volatility has never been lower in its history
The 30-day projected volatility of the Bitcoin (BTC) network, which measures the average standard deviation of daily returns, fell to its lowest levels ever. This indicator fell to 0.77% during the previous 30 days. The Buy Bitcoin Worldwide project’s tracking indicates that this is an unquestionable ATL for the biggest cryptocurrency.
The last low was below 1.5% in July 2020. The most recent local low was recorded for the 60-day predicted Bitcoin (BTC) volatility chart in January 2023, below 1.37%. This indicator is now at 1.77%.
Both charts for the 30- and 60-day projected volatility indices for Ethereum (ETH), the second-largest cryptocurrency, are at historic lows and continue to decline.
Its current volatility indices are two to three times greater than they were seven years ago. Litecoin (LTC), the “Digital Silver” and 11th biggest cryptocurrency, was less volatile in 2016.
As previously reported by U.Today, leading altcoin XRP saw a historic decline in volatility following its stunning 75% surge.
The increase in price was sparked by Ripple’s temporary success in the SEC’s legal lawsuit.
Turbulence coming?
The five-day volatility of Bitcoin (BTC) was determined by K33 Research’s (previously Arcane’s) analysts to be lower than that of gold (XAU), the NASDAQ, and the S&P 500 indices. The current decline is the third-largest in only a short period of time since Black Friday in 2020 for cryptocurrencies.
Analysts also noted that periods of market turmoil typically follow such remarkable volatility dropdowns. As a result, both bulls and bears need to be ready for upcoming quick movements.
While this was happening, Bitcoin (BTC) once again failed to defend the significant $30,000 mark. As of the time of publication, it is trading for $29,192 on significant spot markets.
