Bitcoin Volatility Drops to All-Time Low as Hash Rate Spikes

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On-chain analysis indicates that Bitcoin market volatility is at an all-time low. Crypto analysts have been watching historical BTC volatility levels and they have bottomed out.

The last time volatility reached levels near current levels was in late 2018. It was a bear market similar to current conditions, with crypto prices falling throughout this period. year.

Volatility spiked again towards the end of this year after the final runout on December 15, when BTC fell to $3,200.

Bitcoin volatility is at an all-time low pic.twitter.com/sGOIC7cM6e

Will Clemente (@WClementeIII) December 25, 2022

Other analysts also confirmed the new low in Bitcoin volatility. The asset has traded between $15,700 and just over $18,000 over the past six weeks. With most of the world in the holiday period, market activity is unlikely to resume until next month.

It was pointed out that a rally had already followed periods of such low volatility. Every time volatility fell below the 1 value, it was followed by a bullish rally with one exception – October 2018, an analyst said.

$btc $btcusd

Bitcoin volatility lower than 2018 just before 6k break

GM pic.twitter.com/J974VEHlXP

Coiner-Yadox (@Yodaskk) December 25, 2022

Drop in Bitcoin Hash Rate

Volatility is not the only metric that has fallen for Bitcoin. The network hash rate is also down sharply; however, the two are not necessarily related.

According to Blockchain.com, hash rates fell to 229 TH/s (terahashes per second) on December 25. This represents a drop of 16% from the record high of early November.

The recent drop was attributed to Texas miners being shut down due to extreme weather and demand on energy grids. There have been concerns about another sale of troubled miners, but it has yet to materialize.

Over 30% of the #Bitcoin hashrate has been taken offline due to extreme weather conditions in Texas and yet the global #Bitcoin network continues to function flawlessly.

Now imagine if Amazon or Google tried to disable 1/3 of their data centers. pic.twitter.com/G49iqBZXDL

Dennis Porter (@Dennis_Porter_) December 25, 2022

BTC Price Outlook

Bitcoin prices moved very little over the weekend, hovering around $16,800 for the Christmas holiday.

However, BTC hit a five-day high of $16,895 during the Monday morning Asian trading session. There has been no real momentum since the asset fell below $17,000 on December 16, it has been flat ever since.

The crypto market capitalization is currently at $846 billion, which is pretty close to the highs after the 2017 bull market. With a 72.5% drop, most analysts agree that the markets are close to their trough for this bearish cycle.

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