The post Record-Low Bitcoin Volatility: A Magnet For Institutional Investors? appeared on BitcoinEthereumNews.com.

The market behavior of Bitcoin has undergone a dramatic change as its volatility has fallen to an all-time low. This change is a sign that the market is maturing and attracting more institutional investors, who had previously avoided its volatile price fluctuations. Bitcoin 3-Month Volatility Down To New Lows According to the most recent data from Glassnode, the cryptocurrency’s three-month realized volatility has fallen to all-time lows. The days of jaw-dropping 80–100% price swings are over. With volatility staying below 50%, Bitcoin is still moving in a fairly stable direction today. This newfound stability isn’t just a fleeting moment – it’s reshaping the entire market landscape. Institutional Powerhouses Step Up With a solid $40 billion in net inflows, the introduction of US spot Bitcoin ETFs has completely transformed the market. In addition to countries making calculated investments in Bitcoin, BlackRock’s iShares Bitcoin Trust (IBIT) is spearheading this institutional push. The market’s reaction has been intriguing: rather than the typical peaks and troughs, Bitcoin now exhibits a “stair-stepping” development pattern, with price surges interspersed with consolidation periods. The Impact Of Whales On Market Dynamics An interesting trend can be seen in a recent data: Over a hundred new wallets containing at least 100 BTC units were added in February, whereas nearly 138,000 smaller ones suffered a decline in holdings. This development provides important insight into the mood of the market. While newer traders who joined within the last six months are selling due to short-term market swings, large investors, commonly referred to as “whales,” are discreetly accumulating Bitcoin during price falls. A New Era In Crypto Investing For long-term investors, the current state of Bitcoin offers an engaging story. Even if the flagship digital asset’s price dropped by 0.10% in a day to $97,547, its risk-adjusted returns still beat those of…

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Filed under: News - @ February 7, 2025 11:20 am