2 - 4 minute read
Bitcoin’s price has been known for its volatility, but according to trader and analyst @BigCheds, as Bitcoin becomes more institutionalized and mainstream, its price will become less volatile. This shift could have significant implications for investors and traders in the cryptocurrency market.
Bitcoin has experienced large price fluctuations over the years, reaching almost $20,000 in 2017 before plunging back down below $4,000 in 2018. Since then, the asset has climbed back up to nearly $70,000 and fallen below $16,000. As Bitcoin continues to gain mainstream attention and institutional investment, it could become less volatile, according to @BigCheds.
When asked if Bitcoin’s price will ever become less volatile, @BigCheds responded, “Definitely…I think the more institutionalized it is, the more it becomes part of everyday life and more just part of the system. I think the volatility will wane over time — I definitely do.” He also noted that Bitcoin’s bull runs are more accurately depicted by technical price trends rather than narratives, stating, “A bull run, I mean, could mean a lot of different things, so I don’t know that those two are interchangeable… You could say ‘bull run,’ it might mean something different to you than to me.”
If Bitcoin becomes less volatile as it becomes more mainstream, investors and traders alike could see more stable returns on their investments. However, this could also mean a decrease in potential profits from volatility spikes. Traders should consider the long-term potential of Bitcoin becoming mainstream and the potential impact on its price.
The Bottom Line
As Bitcoin gains more mainstream adoption and institutional investment, its volatility could decrease over time. Traders should consider the potential long-term implications of this shift, including the possibility of more stable returns on their investments, but also the potential decrease in short-term profits from volatility spikes. Technical price trends should be considered when analyzing Bitcoin’s potential bull runs rather than narratives.