After reaching a record high above $123,000 in July, Bitcoin has entered a period of low activity, trading within a tight range.
But a dramatic drop in its volatility index suggests this quiet phase might not last much longer.
The Bitcoin Implied Volatility Index (BVIV) has now dipped to 40.84—its lowest point in nearly two years. Historically, when volatility falls below 45, it’s often a sign that markets are consolidating before a major upward shift.
A similar pattern in late 2023 preceded a sharp rally, doubling Bitcoin’s price from $26,000.
While price action has cooled, the market is showing strength beneath the surface. Glassnode data reveals that short-term holders are staying put rather than taking profits, despite BTC’s previous gains.
The current MVRV ratio for this group is at 1.19, well below the 1.33 peak seen last year, indicating low appetite for risk and strong conviction.
With volatility suppressed, supply tight, and holders patient, Bitcoin could be quietly preparing for its next breakout.
