Bitcoin Volatility Crashes to Historic Lows Amidst 'Coiled Spring' Setup

Bitcoin's realized volatility has dropped to its lowest point in years, with Fidelity Digital Assets flagging it as a 'coiled spring' setup. This means that the price is currently more compressed than usual, which can lead to a violent release and subsequent price movements.

The current reading of 1.5th percentile indicates that only about 1.5% of all trading days since Bitcoin's creation have been quieter. Fidelity's own historical analysis shows that when one-year realized volatility hits new lows, large price increases have typically followed.

Spot Bitcoin trading volumes have dropped to their lowest since 2019, and the price has barely budged over a 30-day window, hovering around $65,000. This represents a significant pullback from Bitcoin's all-time high reached in October 2025.