Bitcoin Volatility Plunges to Historic Lows Amid Long-Term Holder Dominance

Bitcoin's volatility has reached historic lows, according to Glassnode analysis. The one-month realized volatility of Bitcoin is significantly lower than usual, and the key explanatory variable behind this phenomenon is long-term holder supply.

Glassnode's statistical analysis indicates that market capitalization, trading turnover, and derivatives positioning have weaker relationships with Bitcoin's volatility. This suggests that long-term holders are playing a crucial role in maintaining stability in the market.