It’s no secret that bitcoin’s price has seen a stunning descent this year amid ongoing regulatory scrutiny, the birth of its futures market and exchange hackings.

Less clear to cryptocurrency traders, however, is what to make of the cornerstone cryptocurrency’s realized volatility.

Bitcoin’s rolling 30-day annualized volatility has sunk to around 61 percent, up modestly from its low of 50 percent earlier this month, according to an analysis from Pension Partners. Still, this volatility pales in comparison to the annualized volatility seen last year, north of 150 percent.

Ultimately, after its volatility has become this depressed and the cryptocurrency has lost as much as 70 percent from its December peak, I believe the selling has become exhausted, and a bottoming process can begin.

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