As Bitcoin Matures, Volatility Drops—So Expect Slower Climbs, Say Experts
Bitcoin's price reached a new high of $118,667, reflecting a 25% increase since the start of 2025. The cryptocurrency's volatility has decreased significantly, with realized volatility at 29.5%, compared to 100% in 2021. Experts suggest that as Bitcoin matures and attracts sophisticated traders, its price movements will be slower and steadier, akin to a sustainable workout regimen rather than a crash diet. The derivatives market has expanded, with open options contracts increasing from $15 billion in 2021 to over $42.5 billion. New exchange-traded funds (ETFs) have drawn institutional investors, contributing to liquidity and further stabilizing the market. Bitcoin spot ETFs saw inflows of $1.17 billion recently, indicating strong interest. However, periods of high volatility may still occur, with potential price surges occurring within tighter timeframes.
