Bitcoin (BTC) volatility remains historically low, with long-term holder supply emerging as the strongest factor in explaining changes in one-month realized volatility, according to Glassnode.
Glassnode's analysis put long-term holder supply well ahead of the other factors it examined. Illiquid supply ranked second, with liveliness and absolute funding rates close behind. Market cap was much further down the list. "The strongest driver of low vol is not market cap. It is who holds the coins," the firm said.
Bitcoin is currently trading near $78,000 after briefly topping $82,000 at one point last week, with analysts at Bitfinex expecting that range to hold for now. "Our view on BTC remains constructive, but the conditions for a sustained advance have not yet been met," the analysts said. "Until then, the evidence supports continued consolidation with an upside bias, rather than a confirmed breakout."
Drivers of BTC volatility. Image: Glassnode.
Bitcoin supply in profit nears historical mean
