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

Bitcoin's price volatility has reached historic lows, according to recent analysis by Glassnode. The analytics firm found that long-term holder supply explains nearly 19% of Bitcoin's detrended one-month volatility variance.

At the time of writing, Bitcoin was trading at $78,449.49 after falling below $79,000 following an unsuccessful attempt to remain above $80,000.

Glassnode compared 13 variables and found that long-term holder supply led the pack, followed by illiquid supply and liveliness, a measure of older-coin spending activity.

Market capitalization ranked near the bottom of Glassnode's comparison, explaining less than 3% of the variation. Coin velocity, which measures onchain transaction volume relative to market capitalization, also explained a relatively small share.