Bitcoin Turns Less Volatile Than S&P 500, Tech Stocks and Gold

Bitcoin trading volume tumbled last month amid waning volatility and little notable price swings in a market that speculators traditionally gravitate to for its turbulence.

July saw the lowest monthly trade volume for Bitcoin since November 2020, according to data from K33’s Bendik Schei and Vetle Lunde. The drop-off happened as volatility also plummeted, with the digital currency’s five-day volatility sitting below that of the S&P 500, tech stocks and gold, “a rare feat that has previously foreshadowed substantial volatility eruptions in the near term,” they wrote in a Tuesday note.

Bitcoin’s 30-day volatility is, in fact, sitting near five-year lows at levels only seen on eight occasions since January 2019.

“The market is clearly in an unprecedented stable stage, which has typically acted as a massive pressure valve for volatility once it finally re-ignites,” Schei and Lunde said. “Traders should thus be vigilant.”

Average 5 Day Volume Bitcoin Compared to NDQ, SP500, DXY and Gold