#NFPWatch The volatility of Bitcoin reaches 2-year lows, what does this mean?.
$BTC ✨💥✨💥✨💥✨
#BTCReclaims110K There is a theory suggesting that the decline in Bitcoin's volatility could accelerate its transition from retail investors to institutional ones. In simple terms, the former would lose interest as this cryptocurrency consolidates as a preferred asset for large portfolios.
This is derived from a Bloomberg report, which highlights that the implied volatility of BTC has fallen to 2-year lows. With this data, one of the most seductive elements of the pioneering cryptocurrency - its strong price movement - would be left behind, the report indicates.
"Bitcoin is becoming less speculative and more like a volatile macro asset," said Michael Longoria of GSR to the cited media. Since its inception, the cryptocurrency has been seen by traders as an agile way to obtain profits through arbitrage or leveraged operations with derivatives.
However, if this downward trend in volatility persists, the profit opportunities for those traders would also decrease. This does not imply that BTC has completely lost its volatile nature, but it shows lower fluctuations compared to previous years. Compared to other assets, its volatility remains significant, keeping it attractive to institutional capital.