Bitcoin volatility retreats to its quietest phase since October 2023.

Bitcoin Volatility Hits Lowest Levels Since 2023, Reflecting Wall Street-Like Market Behavior

Bitcoin (BTC) continues to show subdued price action, trading within a narrow range of $110,000 to $120,000, as volatility falls to levels not seen since late 2023—suggesting a growing resemblance to traditional equity markets.

According to Volmex’s BVIV index, Bitcoin’s 30-day implied volatility dropped to an annualized 36.5% on Wednesday, its lowest point since October 2023, when BTC was valued below $30,000. The data, sourced from TradingView, highlights a new multi-year low in expected market movement.

This decline indicates that traders are not aggressively seeking options for hedging or speculation, despite broader concerns in the U.S. economy, such as the potential for stagflation. Typically, higher demand for options leads to increased implied volatility, reflecting heightened market uncertainty.

In parallel, stock markets are showing a similar cooling in volatility. The VIX, which measures 30-day implied volatility in the S&P 500, has reversed last week’s spike from 17 to 21, indicating a broader sense of calm in risk markets.

A Shift in Bitcoin’s Market Dynamics

Bitcoin’s implied volatility has been trending lower for months—even as prices have more than doubled from $70,000 to over $110,000 since November. This marks a significant departure from historical norms, where BTC’s volatility typically moved in lockstep with price—rising sharply in both bullish and bearish conditions.

Analysts attribute this shift to the growing use of structured products involving the sale of out-of-the-money call options. These strategies tend to dampen volatility, particularly in rising markets.

The result: Bitcoin’s market behavior is beginning to align more closely with that of traditional Wall Street assets, where long bull runs often come with compressed volatility. This trend reflects a maturing asset class—less driven by retail emotion, and increasingly shaped by institutional structure.