Definition ∞ A low volatility regime in cryptocurrency markets characterizes a period where asset prices display relatively small and infrequent fluctuations. During such times, price movements remain within a narrow range, indicating a phase of relative stability. This contrasts with the typically high volatility often associated with digital assets.
Context ∞ While low volatility can be perceived as a lack of trading opportunities by some, it can also present strategic advantages, such as opportunities for portfolio rebalancing or arbitrage trading. Bitcoin, for instance, has shown periods of historically low volatility as the market matures. Such regimes often precede significant price movements, making them important for market participants to monitor.
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