Long-Term Holders Fuel Bitcoin's Historic Low Volatility

Bitcoin's volatility has hit historic lows in early September 2026, dropping to the 1.5th percentile of all time. To put this into perspective, Bitcoin has been less volatile than this only 1.5% of the time in its entire history.

The cause of this low volatility isn't some external factor, but rather the long-term holders who refuse to sell their coins. These individuals have absorbed supply at an alarming rate, making it seem like a small puddle compared to the rest of the market.

A mid-August report from VanEck found that Bitcoin's annualized realized volatility had plummeted to just 27.2%. This is a significant drop from its historical average of around 80%, roughly one-third of normal levels.