Bitcoin Volatility Is Near Historic Lows With 71% of Supply in Profit. What That Actually Describes
Sam DaoduWed, September 9, 2026 at 12:25 AM GMT+3 7 min read
Quick Read
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Bitcoin's one-month realized volatility is near historic lows, and Glassnode says the decline is being driven more by long-term holders keeping their coins off the market than by changes in market cap, open interest or funding rates.
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About 71% of Bitcoin's circulating supply is currently in profit, still below the 74.7% historical average that has coincided with previous shifts from bear markets to bull markets, although the figure alone does not signal a new uptrend.
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Bitfinex describes the current setup as an upward consolidation, but says Bitcoin still needs stronger confirmation of a sustainable rally after reaching $82,283 on September 3 before falling back below that level.
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Bitcoin (CRYPTO:BTC) trades around $78,000 today, after closing at $79,092 on September 7. At the same time, Bitcoin's one-month realized volatility has fallen close to historic lows, while roughly 71% of the circulating supply remains in profit. That figure is approaching the historical average of 74.7%, a level that has often appeared around periods when Bitcoin shifted from a bear market into a new bull phase.
The picture looks encouraging on the surface, with low volatility suggesting that Bitcoin has entered a calmer phase while a large share of holders remains in profit. However, that strength could also become a source of selling pressure if prices move back toward previous highs.
So, is the market building the foundation for another leg higher, or is this calm period setting Bitcoin up for another wave of profit-taking?
What Bitcoin's Compressed Volatility Does
One-month realized volatility measures how much daily returns have varied over the past thirty days, using actual price changes rather than options-implied estimates. When it compresses, day-to-day moves get smaller.
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A quiet period only reflects how contained recent price movements have been. History shows that similar periods of low volatility have preceded both sharp rallies and steep declines. That makes the reading more useful for describing current market conditions than predicting Bitcoin's next major move.
Bitcoin's calm trading is also part of a broader market trend, with the CBOE Volatility Index closing at 15.30 on September 7, 2026, and placing in the 14th percentile of its trailing one-year range. This means the VIX is currently lower than about 86% of its readings over the past year, showing that volatility is also relatively subdued across the wider financial market.
Glassnode Says Holder Behavior Explains More Than Leverage
Bitcoin's low volatility may have less to do with traders backing away from leverage and more to do with the people who are not trading at all. Glassnode found that long-term holder supply was the strongest factor explaining changes in Bitcoin's one-month realized volatility, ranking above market cap, open interest and funding rates.
That matters because long-term holders are holding coins that have not moved on-chain for more than 155 days, keeping a large part of Bitcoin's supply out of the market even as prices rise and fall. With fewer coins changing hands, buying and selling have less supply to push against, which can help keep daily price swings contained.
Leverage still plays a role, particularly when crowded positions trigger forced liquidations that can turn an ordinary move into a much larger one. Open interest measures the value of outstanding futures contracts, while funding rates show the payments between long and short perpetual traders, but Glassnode's findings suggest that neither has been as important to Bitcoin's recent volatility as the amount of supply long-term holders have kept out of circulation.
Supply in Profit at 71%, and What 74.7% Means
About 71% of Bitcoin's circulating supply is currently in profit, meaning those coins last moved on-chain at prices below today's level. For example, a coin that last moved at $50,000 counts as profitable at $78,000, while one that last moved at $85,000 does not, putting the current reading below the roughly 74.7% historical average that has coincided with previous transitions from bear markets to bull markets.
That 74.7% level is a useful point of comparison, but it is not a trigger that tells Bitcoin when to turn higher. To understand what the current 71% reading really says, it helps to look at what the metric captures and, just as importantly, what it leaves out.
The metric relies on each coin's last recorded on-chain movement, while most Bitcoin trading takes place inside exchange order books without moving coins on the blockchain. A quiet on-chain reading can therefore look the same whether investors are quietly accumulating Bitcoin on exchanges or simply doing very little.
As more coins move into profit, their holders have more reason to sell if Bitcoin climbs further. So while 71% suggests improving market conditions, it also points to a growing pool of potential sellers ready to take profits at higher prices.
Bitfinex Reads the Bitcoin Price as Upward Consolidation
Bitfinex analysts describe Bitcoin's current setup as an upward consolidation, meaning the price is moving sideways after a directional move as the market absorbs the earlier gains. Bitcoin briefly pushed above $82,000 on September 3, but the move failed to hold, with the price reaching $82,283 before closing at $79,092 on September 7, and around $78,000 today.
Bitfinex points to ETF inflows and stablecoin growth as signs supporting the market, while highlighting continued positive ETF flows as something to watch. Stablecoin growth means more dollar-pegged tokens are entering the crypto market, creating capital that can be deployed without leaving the ecosystem, while Bitcoin spot ETFs pulled in $3.8 billion across three weeks ending September 4, including $731 million in inflows on September 3.
But Bitfinex also sees a risk in the rising supply in profit, since more profitable holders mean more coins that could come back to market when Bitcoin retests recent highs. That leaves the outlook dependent on whether fresh demand from ETFs and stablecoins can absorb selling pressure as more holders look to take profits.
Three September Dates That Could End the Quiet
Three scheduled events could give Bitcoin's quiet market something to react to over the next eight days. August CPI is due on September 11, the Senate is set to vote on cloture for the CLARITY Act on September 15, and the Federal Reserve will announce its next rate decision on September 16, with Polymarket pricing a hike at 60% to 65% and CME FedWatch at 58.4%.
Low volatility suggests Bitcoin's recent price swings have been contained, but that can change quickly with a fresh catalyst. With three potentially market-moving events packed into eight days, the next major move could come from either a stronger push higher or another wave of selling.
Spot ETF net flows need to stay positive week over week to support the institutional demand Bitfinex highlights, while Bitcoin needs to reclaim and hold above the $82,283 high from September 3 on a daily close to provide the confirmation the firm says is still missing. A decline in long-term holder supply would suggest that coins previously kept off the market are starting to move again, potentially weakening the force that has kept Bitcoin's volatility compressed.
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