As Bitcoin continues to mature, its volatility is steadily decreasing, and according to experts, a gradual price increase is now more likely than explosive rallies.
On Friday, Bitcoin hit a new all-time high, surging past $118,667 — nearly $7,000 higher than the beginning of the week.
📊 However, experts believe that the pace of Bitcoin’s growth may now be slower than in previous years. This is largely attributed to the expansion of the options market and Bitcoin’s growing market maturity.
🧠 Why Is Bitcoin Less Volatile Now?
🔹 The introduction of Exchange-Traded Funds (ETFs) has played a major role in stabilizing the market. On Thursday and Friday alone, Bitcoin ETFs attracted over $1 billion in investment.
🔹 According to analysts, Bitcoin’s volatility is declining because the market is now dominated by more strategic and institutional investors, who deploy calculated strategies rather than speculative bets.
🔹 Greg Magadini, Director of Derivatives at Amberdata, stated:
“Massive and rapid price surges are now less likely as Bitcoin has become a more mature and stable market. With large capital inflows, it has become harder to move the price quickly.”
🔙 Then vs. Now
📌 2017: Bitcoin soared from $786 in January to $19,345 in December, a staggering 2,360% increase.
📌 2021: Volatility was still high, with nearly 100% yearly change.
📌 Now: Volatility has dropped to around 29.5%, indicating a more stable growth pattern.
🔎 The Role of the Options Market
The options market has grown significantly. Investors are now selling call options, providing liquidity and helping reduce unnecessary price swings.
💼 A New Type of Investor
Institutional investors and funds are entering the market via ETFs, adding billions in capital since January 2024. This institutional inflow is maturing the market and making price action more stable and strategic.
⚠️ Volatility Isn't Gone Forever
While volatility has decreased, it hasn’t vanished. Sudden price spikes may still occur, but these are now expected to be less frequent and shorter in duration than before.
📌 Conclusion: Bitcoin’s days of wild 2000% yearly gains may be behind us — but its slow and steady climb supported by institutional trust might be even more powerful in the long run.
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