In early August, bitcoin (BTC) volatility was at a three-year low.
In the middle of this month, it weakened to its lowest level ever recorded.
According to Block Research, BTC’s volatility index in monthly terms is now at 15.5%.
In 2022, the index was just above 61%, and in 2023, the index was 43.8%.
Investor activity dropped sharply over the summer, which led not only to a narrowing of the cryptocurrency’s price fluctuations, but also to a drop in trading volume. Last Sunday, the average daily amount of bitcoin transactions fell to $1.88 billion.
Michael Dunn, head of the Bitnomial exchange, told The Block portal that bitcoin will be able to take off only after the U.S. Federal Reserve refuses to tighten monetary policy.
If the rate remains unchanged, cryptocurrencies will be able to attract some of the capital that has entered the stock markets.
Volatility (ETH) is also at historic lows.
A note from IntoTheBlock notes that ETH is showing a decline in trading volume, just like bitcoin.
Experts believe that volatility will escalate as early as September. The preparation for a new stage of investment in digital currencies is evidenced by the increased activity of institutional investors who enter crypto funds.
Over the past seven days, companies and hedge funds have invested nearly $29 million in bitcoin products, according to data from CoinShares.
Researchers also noted that the influx of capital put a dent in the three-week withdrawal of $144 million from crypto funds.