As Bitcoin Matures, Volatility Drops—So Expect Slower Climbs, Say Experts
2025-07-12 17:10:56
Main Idea
The article discusses Bitcoin's current market behavior, noting its slower growth compared to previous cycles and the influence of new ETFs on its volatility and trading patterns.
Key Points
1. Bitcoin's price growth is slower than in previous cycles, with a current realized volatility of 29.5%, significantly lower than 2021's 100%.
2. The derivatives market has grown, with BTC open options contracts reaching over $42.5 billion in May 2025, compared to a peak of $15 billion in October 2021.
3. Investors are increasingly using Bitcoin ETFs, such as BlackRock's iShares Bitcoin Trust, for trading, contributing to more stable price movements.
4. Bitcoin spot ETFs saw significant inflows, with $1.17 billion on Thursday and $1.03 billion on Friday, driven by major firms like BlackRock, Fidelity, and ARK Invest.
5. Despite the slower growth, experts like David Lawant of FalconX caution that periods of high volatility in Bitcoin's price are still possible.
Description
Bitcoin to the moon? Not so fast, experts say, as the asset has matured and is now being used by traders for more sophisticated bets.
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