Bitcoin's Recent Subdued Behavior Signals It's Closely Following Global Developments

The digital asset, perhaps best known for its volatility over the years, has been unusually subdued in recent weeks—a sign that it's closely following global developments

Bitcoin’s volatility has hit record lows in recent weeks, largely due to the digital asset’s close correlation with the stock market this year. 

The S&P 500 and Bitcoin are both up by around 4% so far in 2025. Bitcoin has fluctuated between $94,000 and $100,000 for the past two weeks, “exhibiting reduced volatility compared to its historical average," Fineqia International analyst Matteo Greco said Wednesday. 

“This reflects a phase of market consolidation and uncertainty, influenced by macroeconomic concerns and speculation over the Federal Reserve’s and other major central banks’ future interest rate decisions," he added.

Bitcoin’s volatility has dropped to record lows this year as the digital asset’s price has largely followed the stock market.

After surging in the aftermath of President Donald Trump’s election victory in November, which was widely seen as positive for cryptocurrencies due to expectations of an easing of the regulatory burden on the sector, the rally has fizzled out and investors now seem to be closely following global events.

While that may mean reduced volatility for now, it also means the direction of Bitcoin may be even harder to predict in the weeks ahead as geopolitical uncertainty mounts.