Bitcoin volatility has decreased, and the future trend seems a bit "uncertain".

Recently, QCP released a briefing mentioning that the volatility of Bitcoin has decreased. What does a decrease in volatility mean? Simply put, it means that the price of Bitcoin is no longer "surging and plummeting" like before, and has become relatively stable. However, this also means that it may be difficult for Bitcoin to have significant breakthroughs in the short term. Why do we say this? Let's talk about it.

1. What does a decrease in volatility mean?

The volatility has decreased, just like the waves in a lake becoming smaller. In the past, Bitcoin's price fluctuated significantly, sometimes rising or falling by several thousand dollars in a single day. Now, this intense fluctuation has reduced, and the price has become relatively stable. This indicates that investors in the market have a bit of "confusion" regarding their confidence in Bitcoin, and everyone is somewhat uncertain about how the price will move next.
2. Why is Bitcoin so "stable" now?
The QCP briefing mentioned that the market currently lacks a clear "catalyst." A catalyst is like giving a bicycle a push, the force that makes it accelerate. For the price of Bitcoin to rise or fall significantly, it usually requires some major events to drive it, such as policy changes, large companies investing in Bitcoin, or a sudden change in a country's attitude towards Bitcoin. However, right now, none of these "driving forces" have appeared, so the price of Bitcoin is relatively "stable."
3. Impact of Other Markets
In addition to the factors related to Bitcoin itself, the situation in other markets also affects Bitcoin. For example, the global economic situation is currently unstable, and everyone is quite cautious, reluctant to take risks in investing. QCP mentioned that important events such as the U.S. non-farm payroll data and the China-U.S. trade negotiations have kept investors in a wait-and-see state. This cautious sentiment has also spread to the Bitcoin market, causing the price fluctuations of Bitcoin to decrease.
4. How will Bitcoin move in the future?
QCP predicts that bitcoin may continue to be in this "stable" state in the coming months. Because there is no clear catalyst, it is difficult for the price of Bitcoin to have a big breakout. However, they also mentioned that some investors are starting to try some "opportunistic long-term volatility trading", meaning that they feel that there may be some small fluctuations in the price of Bitcoin in the future, but not too much. It's like throwing a small stone on a calm lake, there may be some small waves, but no big waves.