The volatility of Bitcoin has reached record lows, which could attract more institutional investors. The decrease in volatility suggests that Bitcoin is stabilizing as an asset, making it more appealing to institutions that previously saw its price fluctuations as a risk. This trend aligns with the entrance of more sophisticated investors, who are dominating the market and creating a more controlled market structure. The reduced volatility has also led to a new price pattern, with more stable growth and periods of consolidation rather than sudden crashes. The launch of US spot Bitcoin ETFs has provided regulated exposure to Bitcoin, contributing to a more stable market. Bitcoin's role as a macroeconomic asset is expanding, with countries like El Salvador and Bhutan investing heavily in it, and the US government exploring its potential as a strategic reserve asset. The demand dynamics for Bitcoin have also changed, with large-scale investors accumulating the asset at a steady pace while newer traders are selling due to short-term volatility. Despite the low volatility, Bitcoin's risk-adjusted returns remain higher than most major asset classes, strengthening the case for it as a long-term investment.



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