BlockBeats news, December 25, according to Coinglass data, Bitcoin volatility is temporarily reported at 2.01%, slightly above the average level since mid-May. Over the past month, Bitcoin has consistently fluctuated within a narrow range of $80,000 to $95,000, and the funding rate for Bitcoin perpetual contracts remains negative, indicating that bearish sentiment dominates the market.
BlockBeats note: High Bitcoin volatility is often associated with speculative trading and retail FOMO sentiment. When volatility declines, it may signal a reduction in short-term speculators, with the market entering a consolidation period or a ‘cooling-off period.’ Additionally, Bitcoin price fluctuations are frequently linked to macroeconomic events, such as inflation expectations, interest rate changes, or geopolitical risks. When these external factors stabilize, Bitcoin’s volatility may subsequently decrease.
