Bitcoin Volatility Hits 36% as Market Capitalization Remains Flat

Bitcoin has been stuck in a narrow trading range for weeks, and its volatility is at a historically low level of 36%. The asset traded at $64,509.85 on Thursday, up 0.8% over 24 hours and 1.3% on the week, but its market capitalization remains unchanged at $1.33 trillion.

According to the source, Bitcoin's implied volatility index has collapsed to 36%, a level not seen since May 31. In contrast, the S&P 500 is up 3.12% in August and has added $2.1 trillion in market capitalization.

The rest of the major cryptocurrencies are also underperforming, with only Ethereum holding positive territory. The 50-day exponential moving average sits at $64,587, a level that Bitcoin has repeatedly failed to break through.

Despite its volatility being underpriced, some analysts believe that the eventual breakout from the current range will be violent rather than orderly. With a 36% floor on a 49%-drawdown asset, it is likely that risk has not been priced yet.