Bitcoin volatility at gold level

The Bitcoin price has barely moved for months. The volatility level is dropping to an all-time low - and approaching the stability of gold. This is according to data from Glassnode.

According to Glassnode, the assets' Bollinger bands, a technique widely used in technical analysis, are only 2.9 percent apart, indicating an exceptionally tight trading range. This situation has occurred only twice: September 2016 and January 2023.

The low volatility means traders are making very small margins. Bitcoin has been trading around US$30,000 for months. The standard deviation of daily returns on Bitcoin is at a low of 0.74 percent. This brings digital gold closer to real gold: the precious metal's return deviation has averaged 0.63 percent for years.

While short-term investors are ignoring the market for a while, long-term investors are betting on the next halving. These investors are mostly stacking sats.