Bitcoin: This new reality that changes the game

Bitcoin (BTC) has seen a steady drop in realized volatility since the pandemic began, creating difficulties for individual traders. With lower volatility, the chances of earning big profits through short-term trading are falling. These shifts in the market make it tough for everyday traders.

Bitcoin’s low volatility makes it hard for individual traders to find quick profit opportunities. The current market conditions limit price changes necessary for significant short-term gains, making it less appealing for retail speculators who depend on larger price swings.

In contrast, large businesses and government organizations view the situation differently. Axel Adler Jr. explains that these institutions benefit from the stable volatility. Companies are now investing in Bitcoin as a way to protect themselves against traditional assets. Governments are also looking at it as a strategy to maintain value amidst inflation.

As volatility decreases, Bitcoin is becoming more popular among these organizations, which can handle price changes better. This new market scenario shifts how Bitcoin is viewed. While individual traders struggle to find the volatility they want, institutional investors are uncovering new possibilities.

This trend is advantageous for large corporations and governments, who regard Bitcoin's stability as a long-term investment chance. On the flip side, individual traders who depend on volatility for quick gains find this situation less favorable.

In summary, Bitcoin’s falling volatility restricts short-term trading profits for retail traders but creates fresh opportunities for institutional investors. This shift could change how BTC is viewed and utilized in the future, solidifying its role as a unique asset class.