Bitcoin has recently become "well-behaved"! Bloomberg's ETF expert Eric Balchunas found that since the Bitcoin ETF was listed, the price fluctuations of Bitcoin have noticeably decreased.
Specifically:
1. The 90-day volatility index has dropped below 40 for the first time (it was over 60 when it was just listed)
2. Now the volatility of Bitcoin is less than twice that of gold
3. It's worth noting that it used to be more than three times that of gold!
This is like a noisy child suddenly becoming quiet. Previously, Bitcoin's price would jump up and down frequently, but now it has finally stabilized a bit. Experts believe that this is mainly due to:
- A large amount of institutional funds entering the market through ETFs
- A more mature investor structure
- Increased market liquidity
However, be aware:
- Lower volatility does not mean no risk
- Bitcoin is still more volatile than gold
- The long-term trend still needs to be observed
In simple terms, Bitcoin is transforming from a "wild child" to a "well-behaved student," which could be a good thing for investors. For newcomers looking to enter the market, now might be a good time! $BTC