- In the past 30 days, Bitcoin’s volume fell by almost 37%.
- BTC worth $1.3 billion was delisted on May 15.
From Bitcoin [BTC] volatility has once again become a topic of interest for crypto watchers. According to Lucas Outumuro, head of research at blockchain analytics firm IntoTheBlock, the 60-day annualized volatility for the largest digital asset in the market has fallen below 40%, the eighth occurrence in the past 5 years.
How many BTCs can you get for $1?
The analyst used historical data to show that volatility stays below the specified level for an average of 5 weeks before resulting in a 46% price gain for BTC. While this could spark great optimism among BTC bulls, Outumuro recalled three instances where these conditions preceded a 50% drop in BTC’s value.
Bitcoin volatility has fallen to historically significant levels
60D annual full is below 40% for the 8th time in the past 5 years
Average $BTC vol remains below this level for 5 weeks and results in a price gain of 46%
These conditions also preceded 3 accidents of 50% pic.twitter.com/G4YIZLvcsQ
— Lucas (@LucasOutumuro) May 16, 2023
Trading activity cools
Bitcoin trading ranges continued to narrow, indicating increasing skepticism in the market. When looking at the price chart of BTC on a daily time frame, the king coin has fluctuated within a range of $26,600 – $27,400 over the past week.
The Bollinger Bands (BB) have converged significantly since the high volatility phase at the end of March.
Source: Trade Watch BTC/USD
In addition, Bitcoin trading volume has also decreased significantly since March. Despite breaking the $30,000 mark in April, monthly volume fell to $492.2 billion, a whopping 55% drop from the $1.1 trillion in the month of May, according to data from Token Terminal.
In the last 30 days, the volume dropped by almost 37%.
Source: Token Terminal
Another factor that could have contributed to the declining volatility was the marked drop in the number of daily active addresses.
According to Santiment, the number of unique addresses involved in BTC transactions fell to 811.9,000 on May 16. This represented a drop of almost 28% compared to a month ago.
Source: Sentiment
Bitcoin outflows are rising
The decreasing volatility indicated, among other things, that large addresses may be adopting a wait-and-see attitude. This may be due to the lack of clear buy and sell signals from the market.
According to Glassnode, more than 48,560 BTC coins were withdrawn from the exchange on May 15, worth a whopping $1.3 billion.
Source: Glassnode
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Most of it was taken from Coinbase, which was the exchange’s biggest pullback in 2023 and the biggest since December.
Such large withdrawals can be explained by either a shift to a long-term strategy or a willingness to keep one’s own money in one’s own custody.