Crypto Options Exchange Deribit’s Bitcoin Futures (BTC) The Volatility Index – used as a cryptographic fear gauge of sorts – has reportedly hit its lowest level in two years, suggesting that there will be no price turbulence for Bitcoin in the near future.

On July 24, crypto derivatives analysis platform Greeks Live noted that the volatility index for both Bitcoin and Ether (ETH) fell to a multi-year low of 37%.

In addition, the current level of implied volatility has fallen to the lowest level in crypto history according to the DVOL algorithm, he added.

DVOL is the Deribit Implied Volatility Index. It gives an indication of the expected volatility for a crypto asset over the next 30 days by analyzing options activity. Simply put, the index can indicate investors’ expectations of cryptocurrency price turbulence.

Greeks Live noted that continued low liquidity has significantly reduced Bitcoin’s Implied Volatility (IV) level.

This suggests that derivatives traders are not convinced that there will be any major moves in the crypto markets in the near term and that the lack of volatility is likely to continue.

“It is an indisputable fact that the overall volatility of cryptocurrencies is falling, which will inevitably force the implied volatility of cryptocurrencies to keep falling to new lows.”

Related: Low Volatility of Cryptocurrency Markets: Curse or Opportunity?

Other analysts using different metrics echoed that sentiment. July 24, cryptanalyst Josh Olszewicz observed that Bitcoin Weekly Bollinger Bands have retreated to record levels. “These are officially the tightest bands [Bollinger Bands] they were sometimes in a weekly time frame,” he said.

Bollinger bands are a type of statistical chart characterizing asset prices and volatility over time that consist of a median trend line with two outer bands two standard deviations apart.

BTC weekly Bollinger Bands, all the time. Source: Twitter/CarpeNoctom

Crypto markets have been in a range with a total capitalization of around $1.2 trillion since mid-March. Apart from a brief peak in mid-April and an equally brief low in mid-June, there has been very little deviation from this level.

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