Bitcoin price volatility hits historic lows amid ETF inflows

According to a joint report by Bybit and Block Scholes for June, bitcoin has entered a zone of historically low volatility thanks to significant inflows into ETFs.

The implied volatility of the major cryptocurrency dropped to just 28%. This marked a record low since October 2023, and was also well below the meaningful threshold of 30%. This dynamic reflects the growing maturity of the asset as BTC gains mainstream acceptance, the report emphasizes.

Meanwhile, realized volatility reached 22–25%, which has not been seen in almost 20 months.

The authors of the report see inflows of funds into bitcoin ETFs as the main factor in stabilizing cryptocurrency prices. Significant institutional investments have fundamentally changed the behavior of the BTC price, contributing to a more stable trading environment. 

As Bybit and Block Scholes' analysis has shown, institutional investors in ETFs have provided ongoing support for bitcoin during market downturns and created a more stable price bottom. This stabilization mechanism has led to smaller and softer volatility spikes and has fundamentally changed the cryptocurrency's risk profile.