Realized Volatility (1W)

Annualized standard deviation of daily log-returns over the past 7 days — a real-time gauge of short-term BTC price turbulence

Property	Value
Category	Market Data
Unit	Dimensionless
Resolution	1d
Assets	BTC
Tier	Basic
API Endpoint	GET /v1/prices
Field	realized_vol_1w

Overview

Realized Volatility (1W) measures Bitcoin's annualized price volatility using a trailing 7-day window of daily log-returns. It captures the most recent, short-lived bursts of price activity — panic sells, short squeezes, macro shocks — before they average out over longer windows.

Because the window is only 7 days, this metric reacts very quickly. A single violent day (±15%) will spike it dramatically and then roll off exactly one week later. This makes 1W vol the most sensitive member of the Realized Volatility family and an excellent real-time stress indicator.

All values are annualized by multiplying the daily standard deviation by $\sqrt{365}$, so results are directly comparable across different window lengths and to traditional finance volatility benchmarks.

Formula

$$\sigma_{1W} = \sqrt{365} \times \sqrt{ \frac{1}{N-1} \sum_{i=1}^{N} \left( r_i - \bar{r} \right)^2 }$$

where:

• $r_i = \ln\!\left(\frac{P_i}{P_{i-1}}\right)$ — daily log-return
• $\bar{r}$ — mean of the $N$ log-returns in the window
• $N = 7$ — rolling window size
• The $\sqrt{365}$ factor annualizes the daily standard deviation
• Result is expressed as a percentage (e.g. 80 = 80% annualized)

Interpretation

• Low (< 30%): Unusually calm market. Often precedes large directional moves. Can signal accumulation or distribution.
• Moderate (30–60%): Normal BTC operating range in non-trending markets or mid-cycle phases.
• High (60–100%): Significant turbulence. Typical during sharp rallies, corrections, or macro-driven shocks.
• Extreme (> 100%): Crisis-level volatility. Historically seen during capitulation events, exchange collapses, or major regulatory announcements.

Because the 1W window is so short, spikes here are sharp and transient. Compare against 1M and 3M values: if 1W >> 3M, a recent shock is still fresh but may mean-revert quickly.

Use Cases

• Volatility regime detection: A sudden jump from 40% to 120% signals a new high-stress episode — useful for risk management and position sizing.
• Mean-reversion signals: Extreme 1W spikes (> 2× the 1M value) historically precede short-term volatility compression and often mark local price extremes.
• Options pricing context: Short-dated BTC options (weekly expiries) are priced off near-term realized vol. Comparing 1W realized to implied vol reveals whether options are cheap or expensive.
• Correlation with fear/greed: 1W vol tracks closely with sentiment indicators. Cross-referencing with on-chain demand (STH cost basis, exchange flows) can confirm whether the spike is capitulation or accumulation.

API Usage

curl -H "Authorization: Bearer YOUR_API_KEY" \
  "https://api.blocklens.co/v1/prices?start_date=2024-01-01&end_date=2024-12-31&limit=365"

Related Metrics

• Realized Volatility (2W) — Annualized standard deviation of daily log-returns over the past 14 days — bridges instant noise and short-term trend volatility
• Realized Volatility (1M) — Annualized standard deviation of daily log-returns over the past 30 days — the industry-standard short-term BTC volatility benchmark
• Realized Volatility (3M) — Annualized standard deviation of daily log-returns over the past 90 days — tracks medium-term volatility across a full market phase
• Realized Volatility (6M) — Annualized standard deviation of daily log-returns over the past 180 days — a slow-moving anchor for long-term volatility trend analysis
• Realized Volatility (1Y) — Annualized standard deviation of daily log-returns over a trailing 365-day window — measures how volatile BTC price has been over the past year
• Price — BTC market price