Binance (BTC) Volatility Confirms Crypto Market in New Phase

On Wednesday, Feb. 11, crypto analytics platform CryptoQuant has provided insights into Binance’s latest BTC volatility metric, which suggests that the crypto market is set to enter a new phase.

The metric, which provides a sense of relief to investors as the recent crypto market crash has triggered doubts and fear. Bitcoin plunged more than 50% from its ATH, sparking discussions across the crypto community.

While Bitcoin has continued to trade below $70,000 for the past few days, the charts showcased by the analyst reveal that the seven-day annualized volatility has surged to approximately 1.51. This marks the highest level the Binance volatility metric has reached since 2022. 
 

While the level has historically represented a period of major repricing and a broad crypto market shift, the metric suggests that the crypto market bloodbath may be drawing near its end.

Bitcoin’s price outlook 

It is important to note that such a sharp increase in short-term volatility often signals a major transition from prolonged consolidation rather than mere temporary price swings.

As such, the crypto market might be set to transition into a period of bullish momentum accompanied with a series of major price recoveries after the prolonged crypto market bloodbath.

Notably, the chart further shows that the 30-day annualized volatility currently sits around 0.81, while the 90-day period hovers near 0.56. This downward movement seen across different time frames suggests that recent volatility spikes have been short-lived rather than sustained. Notably, this is a pattern commonly observed during moments of market rebalancing.

Nonetheless, Bitcoin has continued trading below the $70,000 level, hovering around $67,000 in recent days and showing notable daily losses.

With Binance’s BTC volatility metric surging to its highest level since 2022, the crypto community is optimistic about a potential price resurgence for Bitcoin and other leading cryptocurrencies, including XRP.