Matrixport: Introduction of a Bitcoin Spot ETF to Wall Street Investors Could Potentially Reduce Bitcoin Volatility, Institutional Inflows Will Further Stabilize the Market

BlockBeats News, January 28th, Matrixport released today's chart report stating that over the past five years, Bitcoin's 30-day realized volatility has averaged 58%. Usually, during bull markets and bear markets, volatility exceeds this average, such as during the 2020/2021 bull market and the 2022 bear market. However, the recent volatility is unusually low, which is very noteworthy because Bitcoin's volatility is typically amplified in a rising or falling market.

After the introduction of a Bitcoin spot ETF to Wall Street investors, it seems to have played a significant role in suppressing Bitcoin's volatility. The lower volatility allows institutional investors to take on more risk, coupled with Bitcoin's strong performance in 2023 and 2024, this may continue to attract more Wall Street funds. With institutional buy-side absorbing market downturns, this trend is expected to further stabilize Bitcoin's price, thereby suppressing its volatility.