Bitcoin’s Three-Month Volatility Reaches All-Time Low

Bitcoin's market dynamics have shifted significantly as its volatility has dropped to historic lows, indicating a maturation of the market and an influx of institutional investors.

Key Developments

Three-month realized volatility for Bitcoin is at an all-time low, remaining below 50%.
The introduction of US spot Bitcoin ETFs has led to $40 billion in net inflows, with BlackRock's iShares Bitcoin Trust leading the way.
The price movement of Bitcoin now shows a "stair-stepping" pattern with gradual surges and consolidation periods.
In February, over a hundred new wallets holding at least 100 BTC were created, while nearly 138,000 smaller wallets saw declines in holdings.
Long-term investors find value despite a recent 0.10% drop in Bitcoin's price to $97,547, as its risk-adjusted returns surpass most asset classes.

Analysts suggest that Bitcoin's reduced volatility and strong returns present an attractive opportunity for institutional investment, marking a potential new phase in its financial evolution. The trend indicates a shift towards Bitcoin becoming a more stable asset as larger holders continue to accumulate during downturns.