Odaily News Matrixport published a chart today saying that over the past five years, Bitcoin's 30-day realized volatility has averaged 58%. Typically, volatility exceeds this average during bull and bear markets, such as the bull market in 2020/2021 and the bear market in 2022. However, recent volatility has been unusually low, which is very noteworthy because Bitcoin's volatility is usually amplified when the market is rising or falling.
The introduction of Bitcoin spot ETFs to Wall Street investors appears to have played an important role in curbing Bitcoin volatility. Lower volatility allows institutional investors to take more risks, and coupled with Bitcoin's strong performance in 2023 and 2024, this may continue to attract more Wall Street funds. As institutional buying absorbs the market's decline, this trend is expected to further stabilize Bitcoin prices and thus curb its volatility.