In recent months, Bitcoin has entered a phase of unusually low volatility, capturing the attention of traders, analysts, and long-term investors alike. After the dramatic flash crash on March 12, 2025, the world’s leading cryptocurrency has settled into a tight trading range between $9,000 and $10,000 — a pattern that has persisted for several months. While traditional financial markets, particularly in the U.S., have surged amid renewed investor optimism, crypto markets have remained relatively stagnant. This divergence raises important questions about Bitcoin’s current market dynamics, its evolving role as a digital store of value, and what lies ahead.
Understanding Bitcoin’s Declining Volatility
Bitcoin’s 30-day rolling volatility has dipped to one of its lowest levels in the past three years — a point last seen during the depths of the 2022 bear market before the 2023 recovery began. This sustained calm is notable given Bitcoin’s historically erratic price behavior. However, this period of stability may be nearing its end.
👉 Discover how market shifts could trigger the next major Bitcoin move.
With growing institutional interest, expanding derivatives markets, and increasing on-chain activity, it’s unlikely that Bitcoin will remain this stable for much longer. A gradual rise in volatility appears increasingly probable — potentially aligning Bitcoin with other more volatile segments of the crypto ecosystem, such as decentralized finance (DeFi) tokens.
This doesn’t mean sudden price explosions are imminent, but rather that the foundation is being laid for more dynamic price action in the near future. As macroeconomic conditions evolve and investor sentiment shifts, Bitcoin may once again demonstrate its capacity for rapid revaluation.
Weekly Market Performance Snapshot
Last week, the broader crypto market showed positive momentum, led by Bitcoin SV (BSV), which surged over 20% over the weekend. Despite this broader rally, Bitcoin itself remained remarkably stable:
- BTC: 1.06% weekly change
- ETH: 4.34%
- XRP: 6.64%
- BCH: 8.17%
- BSV: 23.00%
These figures underscore BTC’s current role as a stabilizing force within the crypto asset class — behaving less like a speculative token and more like a maturing digital asset.
Institutional Adoption Gains Momentum: 21Shares Launches Bitcoin ETP on Xetra
A major development in Europe’s financial landscape occurred recently with the listing of 21Shares Bitcoin ETP (ABTC | ISIN: CH0454664001) on Deutsche Börse’s Xetra trading platform. As the third-largest exchange in Europe, Deutsche Börse provides access to over 90% of German equity trading and approximately 30% of European ETF volume through Xetra.
This listing significantly enhances retail and institutional access to Bitcoin across Europe. With a management fee of 1.49% and a track record exceeding 18 months, ABTC offers a regulated, transparent way to gain exposure to Bitcoin without holding the underlying asset directly.
Laurent Kssis, Managing Director at 21Shares, emphasized the strategic importance:
“The listing on Xetra not only strengthens our current position in Germany but also opens up institutional-grade crypto products to the wider European and international markets.”
Such developments signal growing acceptance of crypto-based financial instruments within traditional capital markets — a critical step toward mainstream adoption.
Coinbase Custody Secures Assets for 21Shares’ Bitcoin ETP
In another milestone for institutional infrastructure, Coinbase Custody has been selected to secure the underlying Bitcoin assets backing 21Shares’ ETP. This transition from previous custodian Kingdom Trust marks a shift toward more robust, trusted security solutions.
According to Kssis, this partnership is expected to extend to additional ETPs in the future — including new product launches. By leveraging Coinbase’s offline storage systems, 21Shares ensures higher levels of asset protection, further boosting investor confidence.
👉 See how secure custody solutions are shaping the future of crypto investing.
This collaboration reflects a broader trend: the convergence of traditional finance (TradFi) and decentralized finance (DeFi), where trusted custodians play a pivotal role in bridging regulatory compliance with digital asset innovation.
Bloomberg Intelligence: A Resting Bull Market?
A recent 9-page report from Bloomberg Intelligence suggests that beneath the surface calm lies strong organic growth in Bitcoin’s ecosystem. Analyst Mike McGlone highlights several key indicators pointing to long-term bullish potential:
- Declining volatility
- Rising number of active on-chain addresses
- Increasing investor inflows
- Growing futures open interest
McGlone argues that Bitcoin is increasingly functioning as “digital gold,” especially in an era defined by monetary expansion and social distancing. He also tweeted:
“Bitcoin means financial freedom.”
Supply Scarcity Meets Rising Demand
With a hard cap of 21 million coins, Bitcoin’s scarcity is fundamental to its value proposition. However, estimates suggest that between 1.5 to 6 million BTC are already lost — due to forgotten private keys, hardware failures, or owner deaths. This effectively reduces the available supply even further.
Meanwhile, miners and long-term holders (often referred to as "HODLers") continue to accumulate rather than sell. Chainalysis reports that 60% of investors hold BTC as a long-term investment, reinforcing the narrative of Bitcoin as a store of value.
On-chain data adds further weight: the number of unique Bitcoin addresses has surpassed 856 million, exceeding its previous peak from February 2018. Historically, such milestones have preceded significant price recoveries — including the rebound from late 2018’s bear market bottom.
Even when compared to traditional commodities like crude oil, Bitcoin now exhibits lower volatility — a sign of maturation and increasing market efficiency.
Why Is Bitcoin So Quiet While Stocks Rally?
Despite rising coronavirus cases and renewed lockdown measures in parts of the U.S., traditional markets — particularly the NASDAQ 100 — have reached all-time highs. This rally, fueled by economic reopening optimism and Federal Reserve liquidity programs, has drawn investor attention away from crypto.
According to CoinDesk, this shift explains Bitcoin’s current “boring” phase. Professional traders — who control roughly 85% of Bitcoin volume sent to exchanges — are chasing momentum plays in equities instead of crypto.
Yet retail participation remains strong: 96% of exchange deposits are under $10,000, indicating sustained grassroots interest. Even as short-term traders exit, long-term conviction appears intact.
What This Means for Investors
The current lull should not be mistaken for weakness. Instead, it reflects consolidation — a period where foundational growth occurs out of sight. As macro uncertainty persists and inflation concerns linger, Bitcoin’s appeal as a hedge could reignite demand at any moment.
Frequently Asked Questions (FAQ)
Q: Why is Bitcoin’s volatility so low right now?
A: Reduced trading activity from professional traders, strong long-term holding behavior, and limited new speculative inflows have contributed to lower price swings. Additionally, many investors view BTC as a long-term store of value rather than a short-term trade.
Q: Does low volatility mean Bitcoin is losing relevance?
A: No — quite the opposite. Declining volatility often signals market maturation. Combined with rising on-chain activity and institutional adoption, this suggests growing stability and legitimacy.
Q: Can Bitcoin break out of its current range?
A: Yes. Historical patterns show that extended low-volatility periods often precede significant price movements. With macro risks still present and adoption rising, a breakout is plausible in the coming months.
Q: How do ETPs like ABTC benefit average investors?
A: They offer regulated, easy-to-access exposure to Bitcoin through traditional brokerage accounts — no need to manage wallets or private keys — lowering barriers to entry for mainstream users.
Q: Is now a good time to invest in Bitcoin?
A: While timing the market is difficult, accumulating during consolidation phases has historically proven beneficial. With supply constraints and growing demand fundamentals intact, many analysts view current levels as strategic entry points.
Q: What role does custody play in institutional adoption?
A: Secure custody solutions like Coinbase Custody reduce counterparty risk and meet regulatory standards — essential for pension funds, asset managers, and other large institutions considering crypto allocations.
👉 Explore how you can position yourself ahead of the next Bitcoin surge.
Bitcoin may be quiet today, but beneath the surface, powerful forces are at work: tightening supply, expanding infrastructure, and deepening institutional integration. While short-term price action remains subdued, the long-term trajectory continues to point upward. For informed investors, patience during periods of low volatility can yield substantial rewards when momentum returns.