The Bitcoin (BTC) market is experiencing a sharp decline in volatility despite adverse conditions. Recently, the 30-day implied volatility index (BVIV) for Bitcoin dropped to 36%, marking its lowest point since May 31. This is a significant decrease from around 60% in early June, and the fact that the BVIV, which typically rises in times of market uncertainty, remains low is interpreted as an early signal of a 'bull market that is insensitive to declines.' However, volatility tends to revert to the mean, suggesting that the current low levels may imply a potential rebound. In the short term, bearish factors are prevailing, with a net outflow of $61.53 million occurring in U.S.-listed Bitcoin spot ETFs last week. Additionally, the market capitalization of Tether (USDT) has decreased to $18.3 billion, reaching its lowest level since October. This indicates a reduction in market liquidity and a weakening of investors' risk appetite. According to Bitfinex analysis, around 155,000 BTC have moved in the $60,000 to $65,000 range, forming a strong buying pressure. Currently, the market is at a historical low in volatility and is in a state of reduced liquidity, suggesting that if this balance is disrupted, Bitcoin is likely to exhibit significant movements.
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