On-chain analysis of BTC trading shows that the first cryptocurrency is at its lowest level of volatility ever in late 2022.
TradingView data analysis reveals that Bitcoin shows a record low level of volatility not only in the current year, but also in the entire history of trading. On December 17-25, BTC was traded at $16,800 with a ~0.88% fluctuation. William Clemente, Co-Founder of Reflexivity, also observed a low level of BTC volatility.
Previously, the volatility of Bitcoin fell that low during the crypto winter in 2018. Then, BTC didn’t go above $6,600 between September and November, with a ~2% fluctuation in price. After that, Bitcoin quotes fell to $3,200 in December 2018. During that period, market volatility increased only after BTC lost about half of its value. On-chain analysts on Twitter compared the figures and said that in early 2023, one should expect a new drop in quotes and an increase in volatility.
Some analysts also note a considerable decrease in Bitcoin’s hashrate. According to BTC.com, the hashrate dropped to 229 EH/s on December 26, 13% lower compared to the beginning of November. However, the decline in volatility likely has nothing to do with the falling hashrate because its main reason was the shutdown of mining equipment in Texas due to severe weather conditions. Yet, despite the fact that about 30% of BTC’s hashrate went offline, the network “continues to work perfectly.”
Recall that in November 2022, the profitability of BTC mining fell by 20%.
