Matrixport: The introduction of Bitcoin spot ETFs to Wall Street investors may lead to reduced volatility, and institutional capital inflows will further stabilize the market
ChainCatcher news, Matrixport released today's chart report indicating that over the past five years, Bitcoin's 30-day realized volatility averaged 58%. Typically, during bull and bear markets, volatility exceeds this average, as seen in the 2020/2021 bull market and the 2022 bear market. However, the recent volatility has been unusually low, which is noteworthy because Bitcoin's volatility is usually amplified during market ups and downs.The introduction of Bitcoin spot ETFs has seemingly played a significant role in suppressing Bitcoin's volatility after attracting Wall Street investors. Lower volatility allows institutional investors to take on more risk, and combined with Bitcoin's strong performance in 2023 and 2024, this may continue to attract more Wall Street funds. As institutional buying absorbs market downturns, this trend is expected to further stabilize Bitcoin's price, thereby suppressing its volatility.