Callme Crypto 
The volatility of Bitcoin is decreasing due to the entry of institutional players
Experts from the analytical firm Matrixport have reported a decline in Bitcoin’s volatility due to the entry of institutional players from Wall Street.
They noted that over the past five years, the 30-day realized volatility of Bitcoin has averaged 58%. According to the analysts, this indicator typically rises “in both bull and bear markets,” but recent volatility has been unusually low.
“The entry of Wall Street players into the market through spot Bitcoin ETFs seems to have played a significant role in reducing volatility. Lower volatility allows institutional traders to take on greater risk, which, combined with Bitcoin’s strong performance in 2023 and 2024, is likely to encourage further capital allocation from Wall Street,” the analysts added.
Additionally, they expect this trend to contribute to further reduction in volatility, as “institutional purchases absorb market downturns, creating a more stable pricing environment.”
Recall that on January 14, 2025, Matrixport reported a significant slowdown in the pace of conversion from fiat currency to cryptocurrency. They believe that, as a result, crypto assets are likely to continue consolidating.
