[Analysis: Bitcoin Volatility Drops to Lowest Level Since 2016, Leverage Reduction Lowers Liquidation Risk] BlockBeats News, July 22 – Crypto Quant analyst Axel Adler Jr stated in a post that Bitcoin has recently entered a low-volatility compression phase. The 7-day realized volatility 30-day moving average has dropped to 28.3, down approximately 31% from the June 25 peak of 41.6, and has fallen to the 8th percentile of its historical distribution since 2016. This indicates that volatility on 92% of trading days in the past was higher than the current level. At the same time, the 30-day momentum of Bitcoin's open interest (OI) relative to market value has been negative for 21 consecutive days, suggesting that market leverage is continuing to decline rather than accumulating in a low-volatility environment. The current price has rebounded approximately 11.4% from the June low, but this has not been accompanied by an expansion in derivatives positions, reducing the risk of large-scale liquidation cascades. However, Bitcoin is still below the 200-day moving average of $72,666. If volatility subsequently rises above 35 but the price fails to break above the long-term moving average, the downside risk may increase. [Original Link]