Bitcoin News Today: Bitcoin Volatility Hits Near-Record Lows as U.S. Treasury Announces Strategic Reserve Expansion

Bitcoin markets are experiencing historically low volatility as traders exhibit minimal demand for downside protection, with the Deribit Bitcoin Implied Volatility Index (DVOL) reaching near-record lows. According to Glassnode data, only 2.6% of historical readings have been lower than current levels, signaling extreme market complacency. This subdued volatility suggests that traders are currently perceiving little need to hedge against potential declines, though analysts caution that such conditions often precede sharp price swings [1]. The lack of volatility has raised concerns about the risk of sudden shocks, as suppressed price fluctuations can intensify when sentiment abruptly shifts.

The low volatility environment coincides with the U.S. Treasury’s announcement of a Strategic Bitcoin Reserve. On August 14, 2025, Treasury Secretary Scott Bessent confirmed plans to expand the reserve using forfeited Bitcoin assets and through budget-neutral acquisition methods. Bessent emphasized the administration's goal of positioning the United States as a "Bitcoin superpower of the world." The reserve is intended to grow without imposing new fiscal burdens, leveraging existing resources and exploring cost-neutral strategies to increase holdings. The move has been widely welcomed by the crypto community, with many viewing it as a sign of growing institutional confidence in the asset [2].

In the technical landscape, Bitcoin’s price action around the CME Futures chart reveals a key level of interest near the $118,300 to $119,600 gap zone. BTC briefly dipped into this range before consolidating. Analysts suggest this area could act as short-term support, with a potential retest of the lower bound expected. If the price holds, a rebound toward $121,000 may follow. Traders are closely monitoring this zone, as historical patterns indicate that price gaps often attract movement to "fill" the gap [3].

While the U.S. Treasury has not yet made new open-market purchases, the strategic reserve initiative has contributed to a sense of stability in the market. Analysts argue that the mere possibility of government intervention has led to reduced short-term volatility. The Bitcoin Volatility Index reflects this, dropping to multi-year lows. This shift indicates that investors are increasingly viewing Bitcoin through a long-term lens, despite its historical tendency for sharp corrections.

The Strategic Bitcoin Reserve, established under a March executive order, remains in the early stages of development. While no official purchases have been made, the initiative is seen as a significant step toward institutional acceptance of Bitcoin as a strategic asset. The Treasury's cautious approach aligns with broader macroeconomic uncertainty, as Bitcoin’s price remains sensitive to developments such as inflation reports and Federal Reserve policy decisions.

As the market continues to evolve, the interplay between regulatory developments, institutional interest, and macroeconomic factors will remain critical in shaping Bitcoin’s trajectory. The U.S. Treasury’s involvement, though not yet active in open market operations, signals a broader recognition of Bitcoin’s potential role in the global financial system.

Source:

[1] https://www.mitrade.com/au/insights/news/live-news/article-3-1041913-20250815

[2] https://www.mitrade.com/au/insights/news/live-news/article-3-1042799-20250815

[3] https://coincentral.com/bitcoin-liquidations-hit-1-billion-following-ppi-report-and-us-treasury-announcement/