Understanding 30-Day Realized Volatility in Bitcoin

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Bitcoin, as a leading cryptocurrency, often experiences significant price fluctuations. The 30-day realized volatility is a key metric used to measure the extent of these price changes over a one-month period. This indicator helps investors assess the risk and potential returns associated with Bitcoin investments.

By calculating the standard deviation of daily returns over 30 days, realized volatility provides a historical perspective on market behavior. It is particularly useful for traders looking to hedge positions or optimize their portfolio strategies. High volatility can indicate greater uncertainty, while lower volatility may suggest a more stable market environment.

In recent years, Bitcoin\“s 30-day realized volatility has shown patterns linked to major events such as regulatory announcements or macroeconomic shifts. Monitoring this metric allows users to make informed decisions based on past performance trends.