Onchain
Highlights

DEFINITION:

Realized
volatility
is
the
standard
deviation
of
returns
from
the
mean
return
of
a
market.
High
values
in
realized
volatility
indicate
a
high-risk
phase
in
that
market.
It
is
measured
on
log
returns
over
a
fixed
time
horizon
or
a
rolling
window
to
obtain
a
time-dependent
observable.
While

implied
volatility
refers
to
the
market’s
assessment
of
future
volatility,
realized
volatility
measures
what
happened
in
the
past. 

Bitcoin’s
annualized
realized
volatility
has
fluctuated
throughout
2024,
reflecting
significant
market
movements
and
reactions.
Early
in
the
year,
volatility
peaked
at
over
70%
as
Bitcoin’s
price
approached
$73,000.

 

Following
this,
volatility
and
price
showed
a
pattern:
a
price
correction
while
realized
volatility
saw
a
significant
decline,
bottoming
near
20%
by
late
June.
This
suggests
periods
of
relative
calm
in
the
market
despite
Bitcoin
maintaining
its
value
around
$60,000.

Historical
data
indicates
that
Bitcoin’s
volatility
often
spikes
during
price
surges
or
sharp
declines.
For
instance,
the
long-term
chart
highlights
notable
volatility
peaks
corresponding
with
Bitcoin’s
major
price
movements
over
the
past
decade,
including
the
bull
run
of
late
2017
and
the
sharp
corrections
in
subsequent
years.
The
data
highlights
the
asset’s
characteristic
volatility,
which
remains
a
critical
factor
for
traders
and
investors.

Bitcoin’s
current
lower
volatility
phase
may
indicate
a
market
maturation
or
a
temporary
pause
in
market
activity.
However,
past
trends
suggest
that
periods
of
low
volatility
are
often
followed
by
significant
price
movements,
keeping
market
participants
alert
for
potential
shifts.