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BTC $71,400.32 -2.96%
ETH $1,986.86 -0.68%
BNB $691.72 -2.58%
XRP $1.30 -2.32%
SOL $80.70 -1.12%
TRX $0.3451 -1.00%
DOGE $0.0998 +0.55%
ADA $0.2306 -0.81%
BCH $290.35 -2.67%
LINK $9.02 +0.09%
HYPE $72.48 +5.43%
AAVE $80.18 -1.24%
SUI $0.8777 +0.34%
XLM $0.2557 +3.99%
ZEC $550.54 +0.89%

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Analyst: Bitcoin volatility has decreased by 56% from its quarterly peak, and the market has entered a high compression accumulation phase

On-chain analyst Axel Adler Jr stated in a recent report that the Bitcoin market has entered a significant volatility compression phase. The realized volatility over the past week (30-day moving average) has dropped from about 39 in early March this year to the current level of around 17, with a quarterly decline of over 56%, approaching historical low levels. Currently, the BTC price remains around $73,500, still below the approximately $79,500 200-day moving average. Historical experience shows that extremely low volatility often indicates that the market is accumulating energy, typically followed by a significant directional trend. However, volatility compression itself does not provide directional signals; it merely indicates that the market is about to make a new trend choice.Meanwhile, the Delta indicator, which reflects changes in market premiums (the difference between market capitalization growth rate and realized market capitalization growth rate), has been in negative territory for six consecutive months, further dropping to about -0.0013 in May. This indicator suggests that the growth rate of Bitcoin's market capitalization continues to lag behind the growth rate of realized market capitalization, indicating a contraction in market risk appetite and valuation premium.The current market exhibits a combination of "low volatility + cooling premiums," which is not a typical overheated bull market structure but rather resembles a consolidation phase after emotional cooling. If BTC subsequently returns above the 200-day moving average, and Delta rebounds to near zero, it will indicate that the market has re-entered a risk appetite expansion cycle; conversely, if volatility releases downward and Delta continues to deteriorate, it may enter a deeper risk-averse phase.In summary, Axel Adler Jr stated that the current market direction remains neutral, but the degree of compression is at a high level, and the probability of significant directional volatility in the future is continuously increasing.
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