Bitcoin volatility decreased after the halving. What's the reason?

Bitcoin volatility decreased after the halving. What's the reason?

Author: Robert Strickland (crypto-journalist)


Bitcoin volatility decreased after the halving. What's the reason?

Bitcoin price rose to $66.4 thousand.


Bitcoin is consolidating after the halving at the level of $66 thousand.


According to data from the cryptocurrency exchange Binance, the Bitcoin price against the USDT stablecoin reached $67.2 thousand overnight on April 23. At 10:30 , the Bitcoin price is $66,403 with a market capitalization of $1.3 trillion. Volatility indicators of the leading cryptocurrency show a decrease after the halving. Bit

coin's share of the total cryptocurrency market capitalization, known as the Bitcoin dominance index, was 55% as of April 22.


According to the forecast of the investment company Decentral Park, the peak of Bitcoin dominance in the cryptocurrency market may be reached in the range of 50–60%. The decrease in the dominance index is often associated with the beginning of the "altcoin season," a period when smaller cryptocurrencies by market capitalization usually outperform Bitcoin and Ethereum in terms of growth rate.


The second largest cryptocurrency by market capitalization, Ethereum, is generally following Bitcoin's movements, trading at $3,175 at 10:20. Over the past day, the price of Ethereum has hardly changed.


The largest cryptocurrencies by market capitalization, which are in the top ten of the Coinmarketcap ranking, are following Bitcoin. Prices of cryptocurrencies such as Solana (SOL), Cardano (ADA), Dogecoin (DOGE), and Binance BNB have hardly changed over the past day, with price fluctuations ranging from 0.4% to 2.5%. Ripple (XRP) token saw the highest growth, up by 2.2%. The cryptocurrency Toncoin (TON) lost about 10% of its price over the past day.


Among the top 100 cryptocurrencies by market capitalization, the largest growth over the past day was shown by Akash Network (AKT) — up by 60%. The most significant decline over the past 24 hours was observed in Ethena (ENA) — down by 8%.



Decrease in volatility


Expected Bitcoin volatility. Amberdata

The cryptocurrency market has entered a consolidation phase after the halving — Bitcoin volatility is decreasing. According to Amberdata, the seven-day implied volatility (IV) of Bitcoin, an indicator used by traders to assess expected short-term price fluctuations, is showing a decrease. A similar trend is observed in the 30-day IV. This indicates that market participants do not anticipate sharp movements in the near future.

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