Despite Bitcoin being up 30% this year, many investors are finding the market rather uneventful. Known for its rollercoaster-like volatility, Bitcoin’s recent lack of extreme price swings has left traders seeking more excitement.
“This has been the most boring cycle of all time,” says TraderKoz, a pseudonymous partner at venture studio Kelsier. Philipp Pieper, co-founder of tokenization platform Swarm, echoed the sentiment, noting that the market lacks the wild volatility seen in previous cycles.
In a market that has historically thrived on unpredictability, this newfound calm is unusual. Recent macroeconomic factors, such as Federal Reserve policy and the upcoming U.S. elections, have caused some price fluctuations, but overall, Bitcoin’s volatility has significantly decreased. According to Kaiko, Bitcoin’s price has moved far less in recent months than it did during the same period last year.
Fidelity found that Bitcoin has been nearly four times as volatile over the past four years compared to 11 other asset classes. Even with Bitcoin’s smaller market size—around $2 trillion compared to the bond market’s hundreds of trillions—this is a notable shift.
Many attribute the calmer market to the entrance of institutional investors. Cole Kennelly, CEO of crypto index provider Volmex, suggests that major players like BlackRock have both boosted crypto prices and stabilized volatility. The introduction of new Bitcoin and Ethereum spot exchange-traded options is expected to lure even more institutional investors, further smoothing out price swings.
Pieper points to the growing number of crypto ETFs as another factor behind the decline in volatility. As crypto markets become more integrated with traditional finance, price movements have become less erratic.
While the lack of excitement has left some traders disappointed, experts believe it’s a positive sign for long-term growth. Pieper predicts Bitcoin could surpass $100,000 in the coming years, although that will require significant capital inflows.
