Bitcoin’s Volatility Drops to 2.54%: Indicators of Market Stabilization and Consolidation

Bitcoin’s volatility has exhibited a notable decline over the last two days, now standing at 2.54%, as per the latest data from Coinglass. This decrease in fluctuation is typically indicative of diminishing speculative trading and reduced retail enthusiasm, often referred to as FOMO (Fear of Missing Out). As volatility wanes, it may suggest that the market is entering a consolidation phase or experiencing a temporary cooling-off period. Moreover, the price movements of Bitcoin are significantly influenced by various external macroeconomic conditions, including shifts in inflation expectations, changes in interest rates, and prevailing geopolitical uncertainties. As these external factors stabilize, the likelihood of fluctuating Bitcoin volatility diminishes, reflecting a more mature market environment.