Bitcoin volatility hits record low while stablecoin transactions surge

In 2024, Bitcoin (CRYPTO:BTC) experienced a remarkable year, achieving a price increase of 122% while its annualised volatility reached a historic low.

According to ARK Invest's "Big Ideas 2025" report released on February 4, Bitcoin's one-year volatility fell below 50%, a significant decrease from around 80% in 2022 and over 100% in 2018.

This decline in volatility coincided with the successful launch of multiple spot exchange-traded funds (ETFs) in the U.S., which ARK described as the "most successful ETF launch in history."

By the end of 2024, these ETFs had accumulated over $100 billion in net assets.

Additionally, Bitcoin's inflation rate dropped to 0.9% following the halving event in April, marking the first time its issuance rate was lower than gold's long-term supply growth.

Stablecoins also emerged as a dominant force in the blockchain ecosystem, with their annual transaction value reaching $15.6 trillion.

This figure surpasses Visa and Mastercard by approximately 119% and 200%, respectively.

The report noted that stablecoin transactions reached 110 million monthly, representing a small fraction of those processed by traditional payment networks but with higher transaction values.

On the regulatory front, stablecoins have become a priority for pro-crypto Republicans in Congress.

Senator Bill Hagerty introduced the Clarity for Payment Stablecoins Act of 2024 ahead of the November elections, aiming to establish clearer guidelines for stablecoins.

Bipartisan efforts have also been made to create a regulatory framework for stablecoins, indicating a growing consensus in Congress regarding their regulation.

At the time of reporting, the Bitcoin (BTC) price was $97,935.34.