Bitcoin Volatility Drops to Cycle Low, Traders Turn to AI Stocks and Predictive Markets
Comparatively, Bitcoin's volatility recently fell to a multi-year low. The actual 30-day volatility was about 42%, while the S&P 500 index was about 18%. The gap in volatility between the two is the smallest in history. The market is at a standoff between buyers and sellers, and the sell-off by enterprises and mining companies limits room for growth, while the clearance of leverage and the continued accumulation of long-term holders limited the decline.
As Bitcoin's volatility declined, some short-term traders began to shift their risk appetite to assets such as AI stocks, tokenized stocks, stock perpetual contracts, and predictive markets. According to NYDIG research, short-term traders are more likely to chase volatility, narrative momentum, and potential returns, and traders seeking 5x or 10x returns can now choose between Bitcoin, Nvidia, gold, stock perpetual contracts, 0DTE options, and sporting event contracts.
According to the data, the monthly trading volume of traditional asset perpetual contracts on crypto trading platforms has increased from US$52 billion in January to US$268 billion in June, an increase of more than fivefold in half a year. Meanwhile, Korean retail traders have clearly switched from cryptocurrencies to AI-related stocks, and trading volume on major Korean crypto exchanges dropped by up to 80% year over year.
CoinDesk pointed out that the Bitcoin market is currently more like a dormant state, where declining transaction participation, deep market contraction, and regulatory uncertainty are all reducing volatility. If US crypto regulations make substantial progress, the macro environment changes, or new market narratives emerge, the current low volatility pattern may be broken, and weak liquidity may further amplify price fluctuations.
