Crypto analyst Luke Martin noted that Bitcoin’s volatility over the past 30 days has fallen below that of technology stocks, indicating a rare signal in the market.
According to Martin, Bitcoin’s realized volatility falling below that of the QQQ fund, which tracks the Nasdaq 100, stands out as a development seen only once or twice a year. The analyst stated that Bitcoin has remained unusually calm during a period when other assets have exhibited similarly sharp movements to the cryptocurrency market.
According to shared historical data, Bitcoin rose by an average of 20.58% over a seven-day period following 12 instances where this signal emerged. The average 30-day return after the signal was 141.81%, showing that Bitcoin gained value in all 12 instances examined.
Looking at longer-term data, the 60-day average return was recorded at 359.72%, and the success rate at 91.67%. In the 90-day period following the signal, all 11 events examined showed an increase, with an average return of 635.94%. In the 180-day period, all 10 events resulted in a positive outcome, with an average return of 731.96%.
Martin argued that similar periods in the past have favored Bitcoin bulls, describing the current low volatility as “the calm before the storm.”
