Bitcoin Volatility Plummets, But Extreme Swings Occur More Frequently Than in 2018

On October 10, according to CoinDesk, latest data analysis shows Bitcoin's average volatility has significantly declined recently, but in stark contrast, the frequency of its Extreme Price Swings has actually surpassed the historical peak of 2018.

The report notes that despite the narrowing range of daily price fluctuations across the broader market, reflecting a relatively calm trajectory, tail risk events triggering sharp price jumps have become more frequent. This pattern mirrors the 2018 cycle, indicating that even amid declining overall volatility, the market remains exposed to sudden, severe volatility shocks.

The analysis stresses that this shift in volatility dynamics means investors should not assume reduced risk based solely on low volatility metrics, and must remain vigilant against extreme market scenarios akin to those witnessed during past major bull-to-bear transitions.