The volatility in the price of a bitcoin is falling over time, or not.

[odolvlobo]

Updated: 2023-9-25

[DeathAngel]

As the market matures more participants including institutional investors enter the space bringing stability to the market. Improved regulation & increased adoption of cryptocurrencies contribute to reduced volatility. The development of new financial products & the growing understanding of Bitcoin's fundamentals have also played a role in calming market fluctuations.

[Woodie]

Nice detailed explanation on volatility and it's decline!

If an average Joe who was into crypto was asked if Bitcoin was a volatile asset to own, am more than confident the answer would be No.
And it's quite shocking to see what's happening because the wild swings where expected to increase with more players getting into the market and in turn increase crypto
activity  and demand but shockingly the markets are quiet and  stable...

[fillippone]

Updated: 2023-9-25

We are toward the lower end of the range for bitcoin volatility.
I think this is quite dislocated given the amount of uncertainties with current market conditions: not only specific to bitcoins (e.g. ETF approval, halving) but also macro framework (high rates, dollar strength).
I would expect much more volatility to be priced in.

[MusaMohamed]

We are toward the lower end of the range for bitcoin volatility.
I think this is quite dislocated given the amount of uncertainties with current market conditions: not only specific to bitcoins (e.g. ETF approval, halving) but also macro framework (high rates, dollar strength).
I would expect much more volatility to be priced in.

The Bitcoin volatility become lower and smaller with time and higher price of Bitcoin as well as bigger capital of the coin.

Mayer Multiple is one of indicators that show volatility of Bitcoin with time. After each halving and bull run, its volatility becomes smaller.

The Mayer Multiple chart

What is Mayer Multiple?

The Mayer Multiple was created by Trace Mayer as a way to analyze the price of Bitcoin in a historical context. It does NOT tell whether to buy, sell or hold. The Mayer Multiple is the multiple of the current Bitcoin price over the 200-day moving average.

Why 2.4?
Simulations performed by Trace Mayer determined that in the past, the best long-term result were achieved by accumulating Bitcoin whenever the Mayer Multiple was below 2.4. Since the simulations were based on historical data, they are purely educational and should not be the basis of any financial decision.

[bayu7adi]

As the market matures more participants including institutional investors enter the space bringing stability to the market. Improved regulation & increased adoption of cryptocurrencies contribute to reduced volatility. The development of new financial products & the growing understanding of Bitcoin's fundamentals have also played a role in calming market fluctuations.

As adoption becomes more widespread and extensive, it implies that the level of volatility will decrease. Consequently, the price of Bitcoin is likely to settle at a relatively high value.

The abundance of Bitcoin holders raises the question of whether they are leaning more towards being Bitcoin users or speculators. As we are aware, high volatility is favored by speculators and some investors. So, can Bitcoin truly fulfill its role as a transactional tool when it possesses a highly stable price?

Meanwhile, the distribution of Bitcoin ownership remains quite skewed at present, amplifying the future risk of price manipulation. I still find it challenging to convince myself that Bitcoin can truly attain a state of tranquility and stability akin to traditional fiat currencies.

[slapper]

As the market matures more participants including institutional investors enter the space bringing stability to the market. Improved regulation & increased adoption of cryptocurrencies contribute to reduced volatility. The development of new financial products & the growing understanding of Bitcoin's fundamentals have also played a role in calming market fluctuations.

As adoption becomes more widespread and extensive, it implies that the level of volatility will decrease. Consequently, the price of Bitcoin is likely to settle at a relatively high value.

The abundance of Bitcoin holders raises the question of whether they are leaning more towards being Bitcoin users or speculators. As we are aware, high volatility is favored by speculators and some investors. So, can Bitcoin truly fulfill its role as a transactional tool when it possesses a highly stable price?

Meanwhile, the distribution of Bitcoin ownership remains quite skewed at present, amplifying the future risk of price manipulation. I still find it challenging to convince myself that Bitcoin can truly attain a state of tranquility and stability akin to traditional fiat currencies.

Ideally, the volatility of Bitcoin should decrease as more and more people adopt it. But I have my doubts as well. Yes, there is definitely a question with a less volatile Bitcoin. Will Bitcoin become a more widely utilised medium of exchange or will it remain a haven for traders once it stabilises? I recognise that a lopsided ownership of Bitcoin may lead to price manipulation. Here, I agree with you. As for Bitcoin, I too find it difficult to think that it can ever achieve the same tranquil, stable condition as conventional currencies. There is definitely a rough road ahead. However, it's important to remember that obstacles challenge every new idea and technology. As we wait, let's observe

[Argoo]

Ideally, the volatility of Bitcoin should decrease as more and more people adopt it. But I have my doubts as well. Yes, there is definitely a question with a less volatile Bitcoin. Will Bitcoin become a more widely utilised medium of exchange or will it remain a haven for traders once it stabilises? I recognise that a lopsided ownership of Bitcoin may lead to price manipulation. Here, I agree with you. As for Bitcoin, I too find it difficult to think that it can ever achieve the same tranquil, stable condition as conventional currencies. There is definitely a rough road ahead. However, it's important to remember that obstacles challenge every new idea and technology. As we wait, let's observe

I do not see any significant reduction in Bitcoin price volatility even if there is a dramatic increase in adoption and use by people and businesses. As the liquidity of Bitcoin increases, its price will certainly increase, and the higher the price, the greater the amplitude of its price fluctuations becomes, that is, its volatility increases.
Decentralized cryptocurrency is based on the lack of price regulation and this is the root cause of its high price volatility. Refuse free pricing for cryptocurrency
  is impossible, which means its high price volatility will continue. This indicator may vary only slightly depending on the specific characteristics of market conditions. But so far no one can give an exact answer to this question.