Bitcoin’s Volatility Dips to 1.85%: A Sign of Market Stabilization and Cooling Trends

On May 15th, COINOTAG reported that, according to Coinglass data, Bitcoin’s **volatility** has notably decreased to **1.85%**, a level not charted since late February. This steady decline suggests a gradual slowdown in the overall **downtrend** of Bitcoin prices. Typically, heightened **Bitcoin volatility** is linked to speculative trading and heightened retail **FOMO** (fear of missing out). Conversely, when volatility decreases, it often signals a retreat of short-term traders, indicating a potential consolidation phase or a marked **cooling-off period** in the **crypto** market.

Furthermore, fluctuations in Bitcoin prices are frequently tied to significant **macroeconomic** developments, including shifts in **inflation expectations**, adjustments in **interest rates**, and geopolitical uncertainties. As these external elements stabilize, a subsequent reduction in Bitcoin’s volatility tends to occur, reflecting a more settled trading environment. This trend is crucial for investors looking to navigate the complexities of the cryptocurrency landscape.

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