Following a significant hack incident targeting the Bybit exchange, Bitcoin is maintaining its calm trajectory. During this period of declining volatility, Bitcoin investors are preparing for more purchases, viewing low volatility as a precursor to significant market movements. These developments become even more noticeable due to MicroStrategy’s plans to increase its Bitcoin investments.

Bitcoin (BTC) prices have been stable in the recent past, following sudden volatility after a record hack incident last week. While the attack on the crypto exchange Bybit created a brief disturbance in the markets, Bitcoin investors’ focus shifting elsewhere has resulted in price movements stabilizing.

Particularly, a tranquil atmosphere prevailed over the BTC/USD pair throughout the weekend.

Prominent investor Daan Crypto Trades summarized this situation on the X platform as follows:

“As the price continues to squeeze more tightly, volatility is trending downwards. Even during the drama yesterday, the price closed in the same price range as it has for the past two weeks.” Additionally, mentioning that open interest rates on exchanges fell to their lowest level since February 9, he pointed out that lower open interest and higher prices typically signal a market reset.

While these events unfold, MicroStrategy’s BTC investment strategy is also drawing attention. The company’s CEO, Michael Saylor, shared a graph showcasing the company’s current Bitcoin assets. This disclosure is considered a strong indicator that the company will make additional Bitcoin purchases. Although Saylor noted that the graph does not reflect the purchases made the previous week and did not provide definitive information on future purchases, it indicates that investors need to closely monitor this development.

As speculations surrounding MicroStrategy’s Bitcoin investments increase, potential impacts on the price of BTC are also discussed.

Bitcoin’s implied volatility, historically, has rarely dropped to such low levels. On February 21, blockchain analytics firm Glassnode reported that Bitcoin’s 1-week realized volatility had fallen to 23.42%, approaching historical lows.

Only a few times in the last four years have such low levels been observed; for instance, it dropped to 22.88% in October 2024, and 21.35% in November 2023.

This low volatility might indicate imminent major market movements. Glassnode stated that the lowest levels seen in years hint at implied volatility in Bitcoin options, resulting in significant past volatility increases.

However, longer-term volatility rates, such as those for 3-month and 6-month periods, continue to remain high; 3-month volatility stands at 53.1%, while 6-month volatility hovers around 56.25%.

Bitcoin investors and market analysts believe that significant market movements could follow this period of dwindling volatility.

MicroStrategy’s continued Bitcoin purchases could mean that this movement might escalate. The company’s statements and investment strategies provide significant clues on how the current state in the Bitcoin market might shape in the future.