Bitcoin’s Growth May Slow as Market Matures and Institutional Trading Increases, Experts Suggest

Key Points

1. Bitcoin's realized volatility has dropped significantly from peaks near 100% in 2021 to approximately 29.5% in early 2025, indicating a maturing market.

2. The introduction of Bitcoin ETFs in 2024 has facilitated greater liquidity and market depth, with major players like BlackRock and Fidelity leading significant inflows.

3. The derivatives market for Bitcoin has expanded, with open options contracts on platforms like Deribit reaching over $42.5 billion in May 2025, reflecting increased hedging and market participation.

4. Institutional investors are playing a key role in stabilizing Bitcoin's price, aligning its behavior more closely with traditional equities markets.

5. While Bitcoin's volatility has decreased, experts like David Lawant note that price fluctuations will still occur, but within a more sustainable and controlled framework.