Bitcoin Bulls Go Missing as BTC Upside Volatility Sinks to All-Time Low: Glassnode

Historical volatility squeezes usually break higher, but demand remains weak.

Bitcoin has been left behind by a global risk rally, with fresh Glassnode data showing an unusually compressed market where traders are paying little for either upside exposure or downside protection.

Major equity indices and gold reached record levels after markets reassessed the Federal Reserve's July 29 decision to hold interest rates steady.

Oil also moved sharply lower as de-escalation headlines reduced its supply-risk premium. Bitcoin , however, remained slightly below the level recorded one week earlier and trailed the S&P 500 by more than four percentage points.

Glassnode described the setup as a market "priced for nothing and reacting to everything," with volatility near historic lows even as short-term sentiment changes sharply on relatively small price moves.

Bitcoin's lack of movement persisted despite a significant wallet security incident.

According to Glassnode, an attacker stole approximately 594 BTC, worth around $38 million, from roughly 500 self-custodied wallets in about 25 minutes. The incident prompted holders to move approximately 119,000 BTC that had remained dormant for at least one year, nearly 200 times the amount stolen.

However, only around one-tenth of that revived supply reportedly reached exchanges. New address creation returned to normal within three days, while the supply held in wallets younger than one month increased by approximately 40%.