The future of Bitcoin

Fidelity researcher Zack Wainwright interpreted the recent decline in Bitcoin's volatility and the approval of spot Bitcoin ETFs as an indication that the cryptocurrency is maturing.

“Bitcoin was almost half less volatile in 2024 compared to 2021. “When we put all this together, a thesis begins to emerge that points to Bitcoin becoming increasingly accepted due to maturation.”

Another interesting data is that when volatility decreases in Bitcoin, the next movement is usually upward. This reveals that investors want to buy more stable assets.

The approval of spot Bitcoin ETFs in the USA and the increasing demand for these products play an important role in reducing Bitcoin's volatility and appealing to a wider audience of investors.

BlackRock's Head of Digital Assets, Robert Mitchnick, predicted that in the coming months, major institutional investors such as sovereign wealth funds, pension funds and endowments will also become interested in spot Bitcoin ETFs.

Institutional investors have strict risk management protocols and lower volatility is more compatible with their investment strategies, making Bitcoin a more attractive investment option.