2026-01-02 22:20:16

In the past two years, an interesting phenomenon has emerged in the Bitcoin market—volatility has been steadily decreasing. According to research data from Bitwise, the annualized volatility of Bitcoin in 2025 has dropped to around 38%, making it even more stable than tech giants like NVIDIA, and comparable to blue-chip stocks such as Starbucks and Goldman Sachs. It’s important to note that Bitcoin’s early volatility approached 200%. What does this shift signify? It indicates that Bitcoin is gradually transforming from a purely speculative asset into a true "digital gold."

For investors, the underlying market logic has changed. The era of short-term explosive profits is behind us; now, the focus is more on long-term allocation.

**Institutional Entry Has Changed the Game Rules**

Why has volatility decreased? The key lies in the changing identity of market participants. After the approval of spot Bitcoin ETFs in 2024, traditional financial institutions such as pension funds, insurance companies, and large asset management firms began entering in large numbers. These institutions are not here for short-term trading; their investment logic is entirely different—they focus on macroeconomic trends, regulatory policies, and other long-term factors, rather than daily K-line charts.

This is reflected in concrete data: spot Bitcoin ETFs are absorbing approximately 10,000 Bitcoins daily, while miners produce only about 900 per day. This huge supply-demand gap, on one hand, increases Bitcoin’s scarcity, and on the other hand, stabilizes the price—no one is panic-selling at the bottom.

More importantly, long-term holders now account for over 70% of Bitcoin’s circulating supply, meaning about 14 million Bitcoins are just sitting idle. With fewer truly liquid chips in the market, speculative selling pressure naturally diminishes. This "institutionalization" process gradually aligns Bitcoin’s volatility characteristics with those of traditional stock funds.

**Investment Strategies Must Adjust Accordingly**

The market has changed, and so must strategies. The old approach of chasing short-term explosive gains is now largely unfeasible. Today’s Bitcoin is better viewed as a long-term asset allocation, similar to buying gold or blue-chip stocks. For ordinary investors, this is actually good news—risks are more controllable, volatility is milder, and it’s more suitable to be included in a diversified investment portfolio.

BTC1.58%

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GateUser-2fce706c

· 3h ago

I've always said that this wave of institutional entry is the key to wealth. Those who only realize it now are already a step behind. --- While others are still trading short-term, smart investors have long considered BTC as a gold allocation. Time waits for no one. --- 70% of the chips are held by long-term holders. What does this indicate? The trend is set; it's not too late to enter now. --- From a 200% drop to a 38% volatility, this is the high ground I’ve been talking about—"opportunity only knocks once." Seizing the initiative is crucial. --- There are still skeptics today, just like back in the internet days. The perspective is too narrow. --- The institutionalization process has already begun. Retail investors must either follow the trend with long-term allocations or miss out on this wave of opportunity. --- I predicted three years ago that ETF approval would change the game, and we're finally seeing the results. --- A tenfold difference in supply and demand—doesn't that say enough? The opportunity to shape the future is right in front of us. --- The era of short-term explosive profits is over, but the era of long-term returns has just begun. This is the true wealth secret.

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