Falling into a $29,000 predicament! Bitcoin price drops to the lowest volatility level in years.

Bitcoin has always been known for its high volatility, but this year the performance of the popular digital token has been different. According to data, the volatility of the original cryptocurrency has been on a downward trend, with a 90-day volatility at its lowest level since 2016.

Meanwhile, according to research firm K33, the three-month implied volatility stands at 35. As a comparison, in October 2020, the implied volatility hit a historic low of 56 and then remained below 5% for 47 consecutive days.

Bendik Schei and Vetle Lunde, analysts at the research firm, noted that the summer of 2023 has been unusually calm, resulting in significantly lower implied volatility compared to previous historic lows. This period of calm is unusual for this token, which has attracted attention for its extreme price fluctuations over the years. It used to be common for a 5% or 10% fluctuation in a day, followed by a reversal the next trading day.

Therefore, Bitcoin's recent period of calm has not gone unnoticed, and many other volatility indicators have shown similar lagging patterns.

According to analysts at Glassnode, Bitcoin is currently in a "historically low volatility environment, with multiple indicators showing extreme exhaustion." One of these indicators is the Bollinger band, which currently has a difference of only 2.9% between the upper and lower limits. Similar narrow channels have only occurred twice before.

During June, Bitcoin experienced relatively high price volatility, but just as the market was shocked by BlackRock's submission of a Bitcoin ETF application, Bitcoin once again calmed down. Data shows that Bitcoin has been hovering around $29,000 for each trading day in August.

Kara Murphy, Chief Investment Officer at investment management firm Kestra, commented,