Bitcoin (BTC)'s price volatility has dropped to an all-time low, and the continuous inflow of Exchange Traded Funds (ETFs) is fundamentally changing market structures. Since the official launch of Bitcoin spot ETFs in January 2024, price movements have gradually stabilized, showing signs of breaking away from previous extreme fluctuation patterns.
Bloomberg ETF analyst Eric Balchunas pointed out that Bitcoin's 90-day moving average volatility has fallen below 40, significantly decreasing from over 60 in early 2024. He added that Bitcoin's volatility, which was previously more than three times higher than gold, has now reduced to within twice the level of gold. Actual data suggests that Bitcoin's frequent sharp price swings are diminishing, indicating a potential transition to a more stable digital asset in the long term.
This volatility reduction goes beyond a simple market trend and is establishing a foundation for broader financial accessibility. The expansion of stability is one of the primary reasons large investors and institutions have begun allocating portions of their assets to Bitcoin. Balchunas stated that "the era of extreme price surges and drops is passing" and that Bitcoin's likelihood of being adopted as an everyday exchange medium or global value storage has significantly increased.
This analysis reflects the substantial structural changes brought to the cryptocurrency market by the introduction of ETFs through mainstream financial systems, demonstrating the transitional phase Bitcoin is experiencing on its path to mass adoption. Some industry experts believe that in the coming years, this trend will intensify, leading to increased investment demand focused on holding rather than trading.
Prior to ETF emergence, Bitcoin was strongly perceived as a high-risk, high-return asset, but recently, with institutional fund inflows, it has begun to be evaluated as a more stable investment option. Balchunas projected that if this trend continues, Bitcoin is likely to reduce its gap with traditional assets like gold and establish a definitive place within the global financial system.
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