Bitcoin is showing signs of maturity as a global financial asset, with price volatility dropping to its lowest level in more than 500 days, according to new research.
Volatility refers to the degree of variation of a trading price over time, which indicates the uncertainty about the size of changes in an asset’s value.
Bitcoin (BTC) weekly volatility hit a 563-day low on April 30, said Vetle Lunde, the head of research at K33 Research.
Bitcoin’s decreasing volatility suggests BTC is maturing as a global financial asset, leading to a more stable price trajectory.
Bitcoin has become the seventh-largest asset globally by market capitalization, reaching $1.87 trillion. It now ranks above Silver, Meta and Saudi Aramco, according to Companiesmarketcap.
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Bitcoin exchange deposits have also seen a “meaningful decline,” which suggests “reduced selling pressure and an uptick in conviction-driven custody behavior,” analysts from Bitfinex exchange told Cointelegraph, adding:
“The divergence between price stability and shrinking exchange balances is critical, especially in a week following a $7.2 billion options expiry and heightened macro volatility.”
“In the past, similar patterns have preceded upside continuation, as reduced supply meets sustained ETF and institutional bid,” they said.
The comments come a day after BlackRock’s Bitcoin exchange-traded fund (ETF) recorded $970 million worth of inflows, marking its second-largest day of investments on record, Cointelegraph reported on April 29.
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Bitcoin to hit $1 million by 2028: Arthur Hayes
The recent market activity has reignited long-term bullish predictions. BitMEX co-founder Arthur Hayes said Bitcoin could hit $1 million by 2028, attributing the potential surge to aggressive monetary policy and rising institutional interest.
“It’s time to go long everything,” said Hayes in a keynote speech at Token2049 in Dubai.
“Don’t worry, Bitcoin is going to $1 million by 2028,” he said, attributing the upcoming rally to more “money printing” from the US Treasury.
On April 21, Hayes predicted that the incoming US Treasury buybacks may present the next Bitcoin catalyst, which might mean that this is the “last chance” to buy Bitcoin below $100,000.
Treasury buybacks refer to the US Treasury Department repurchasing its outstanding bonds from the open market to increase liquidity, manage federal debt or stabilize interest rates.
Industry leaders in the investment management space have also predicted that Bitcoin may surpass the $1 million price tag.
Institutional investors appear to be taking note. ARK Invest CEO Cathie Wood said the odds of Bitcoin surpassing $1.5 million by 2030 have increased due to what she called the “institutionalization” of the asset.
“Many institutional investors are now looking at Bitcoin and thinking they need to add it to their asset allocation because its return and risk profile looks so much different than all the other assets in their portfolios,” Wood added.
A potential rally to $1.5 million would assume that Bitcoin realizes an average compound annual growth rate of 58% during the next five years.
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