Bitcoin’s Volatility and Returns Stabilize as Market Matures, Finds Glassnode & CME Report

The 2024 Bitcoin market is following a familiar post-halving path, but with fewer severe downturns than in previous cycles, according to the “Digital Assets: Insights and Market Trends” report by CME Group and Glassnode. Analysts predict further drops in volatility and returns as Bitcoin matures.

The report emphasizes the significance of Bitcoin halvings on market performance. Following the latest halving, Bitcoin’s price has shown less volatility, trading within a narrow range.

Key Insights from the Report:

• Shallow Downturns: Compared to past bull markets, the 2024 uptrend has seen milder corrections. The deepest correction since November 2022 was a 20.3% drop, whereas previous cycles experienced drops of 25%-35% (2016-17) and 50%-63% (2020-21).
• Reduced Volatility: Realized volatility has decreased over time. During the 2017 bull market, it peaked at 120%-150%, while the 2023-24 uptrend saw it compress to 40%-55%.
• Market Maturity: The report attributes these trends to the growing size and institutional adoption of Bitcoin, suggesting that volatility, returns, and drawdowns will continue to compress as the market evolves.

Currently, Bitcoin is trading at $57,971, having appreciated 1.1% in the past 24 hours. It is down 3.1% for the week and 16.4% over the past 30 days, but up 92.2% over the past year, with a peak of $73,738 in March.