#BTCReserveStrategy

Bitcoin price volatility significantly decreases due to the influence of spot ETFs

The trading pattern of Bitcoin has changed dramatically since the launch of spot ETFs in January 2024, causing price volatility to drop to unprecedented lows.

On August 4, Bloomberg's ETF analyst — Eric Balchunas — stated that the 90-day volatility of Bitcoin has now fallen below the 40 mark, the lowest since the ETF was launched, while previously this index had exceeded 60.

Balchunas compared this decrease to gold, showing that Bitcoin's volatility is now less than twice that of gold, instead of more than three times as before.

According to him, this new stability could signal a long-term development phase, where Bitcoin no longer experiences explosive price surges followed by sharp declines but will shift to a trend of lighter fluctuations. This stability also makes Bitcoin more attractive to institutional investors and enhances its acceptance as a means of payment.