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Bitcoin volatility falls as traders rotate to other higher-swing assets

Bitcoin’s 30-day realized volatility dropped to an annualized 42%, narrowing the gap versus the S&P 500 to the smallest on record, according to CoinDesk.

Reported · Written up by our desk · Market Structure

Bitcoin has entered a low-volatility period, squeezing traders who once profited from rapid swings and pushing some market activity toward other asset classes with larger payoff potential, CoinDesk reported. CoinDesk said the industry is also showing signs of a slowdown, pointing to BitMEX shutting down and firms cutting headcount while they wait for a catalyst that could break the current stalemate. The report frames the move as less about a single direction and more about persistently compressed trading ranges. According to CoinDesk, traders are rotating into AI-related equities, tokenized equities, and prediction markets to find the volatility that bitcoin no longer offers. Edmond Goh, global head of trading at B2C2, said retail activity has increasingly shifted toward equities, including AI equities and equity exposure via blockchain.

CoinDesk attributed bitcoin’s quiet trading to a tug-of-war in supply and leverage, including selling pressure from corporations and miners, offset by reduced speculative leverage and steady buying from long-term holders. The outlet added that bitcoin’s 30-day realized volatility is now at an annualized 42%, versus 18% for the S&P 500, the narrowest gap on record between the two.

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Latest closeBitcoin $64,683.90 ▲0.3%|S&P 500 7,785.76 ▼0.2%

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