BTC volatility hits lowest since 2023, signaling major move ahead

Bitcoin's implied volatility has dropped to its lowest level since 2023, mirroring a period of calm that preceded a roughly 325% surge from $29,000 to $124,000, according to an analysis. XWIN Research Japan, a contributor to CryptoQuant, explained that several factors suggest the market is accumulating energy ahead of a significant move. The firm noted that BTC balances on exchanges have fallen to a multi-year low, weakening selling pressure. Additionally, the Market Value to Realized Value (MVRV) ratio is in a neutral zone at 2.1, indicating no overbought or oversold conditions, while stable futures funding rates show no signs of overheating in the derivatives market. The contributor concluded that while these conditions point to an impending breakout, the direction of the move is still uncertain.