Bitcoin has shown a decrease in volatility recently, with no extreme price movements in either direction since the fourth halving. Experts believe that this decrease in volatility indicates maturity in the market.
In the past week, bitcoin experienced a slight decline of over 3%, with more selling activity than buying on most exchanges. According to Kaiko, the total net trading volume for major BTC pairs was $518 million between June 10th and 14th, with Binance and Bybit seeing the highest levels of selling pressure.
Bitcoin’s 60-day historical volatility has remained below 50% since the beginning of 2024, a significant difference from the high volatility seen in 2023. Even with the launch of spot Bitcoin ETFs in the US, volatility has remained relatively low.
The recent drop in price below $70,000 was influenced by high selling volumes from miners affected by the third halving, which reduced block rewards. Despite only a small decrease in hash rate post-halving, strong competition in the mining sector has forced miners to optimize efficiency and find new revenue streams to stay profitable.
Overall, the decrease in volatility and increase in selling pressure suggest a more mature market for bitcoin. This shift may be attributed to changes in market structure and increased concentration of trading volumes in the US market close. While it’s too early to determine if this is the new normal, these developments have contributed to a period of relatively stable price action for bitcoin.