Bitcoin Implied Volatility Declines to Lows, Signaling Milder Market Swings Ahead

Bitcoin’s implied volatility fell to low-expectation levels on Jan. 13, signaling reduced demand for short-term hedging and expectations of milder price swings, according to Glassnode. Analysts note that any return of volatility could lead to faster price moves as positions reset. Meanwhile, profit-taking by long-term holders has eased to levels typical of shallow bear phases, a pattern Glassnode links to heightened uncertainty often seen during mid-cycle bull pauses or early bear-market conditions.