Bitcoin Volatility Hits Historic Lows Amid Market Apathy

To be amongst the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.As we head into 2023, we desire to highlight the latest state of bitcoins volume and volatility after a current wave of capitulation. The bitcoin price is offering that pain as weve yet to see the type of surge in market volatility that has defined market pivots and significant directional relocations in the past.SPX BottomsWhile there are many different ways to specify, classify and estimate bitcoin volume in the market, they all show the exact same thing: September and November 2021 were the peak months of action. Since then, volume in both the area and perpetual futures markets have been in consistent decline.Bitcoin volume throughout area and perpetual futures marketsOverall market depth and liquidity has also taken a major hit after the collapse of FTX and Alameda. Their destruction has led to a large liquidity hole, which is yet to be filled due to the lack of market makers currently in the space.By far, bitcoin is still the most liquid market of any other cryptocurrency or “token,” but its still fairly illiquid compared to other capital markets since the whole market has been squashed over the last few months.

The bitcoin cost is supplying that pain as weve yet to see the type of explosion in market volatility that has specified market pivots and significant directional relocations in the past.SPX BottomsWhile there are numerous different methods to specify, categorize and approximate bitcoin volume in the market, they all reveal the same thing: September and November 2021 were the peak months of action. Because then, volume in both the spot and continuous futures markets have actually been in stable decline.Bitcoin volume across area and perpetual futures marketsOverall market depth and liquidity has likewise taken a significant hit after the collapse of FTX and Alameda. Their destruction has led to a big liquidity hole, which is yet to be filled due to the absence of market makers presently in the space.By far, bitcoin is still the most liquid market of any other cryptocurrency or “token,” however its still fairly illiquid compared to other capital markets considering that the whole industry has been squashed over the last few months.