Analysts suggest that Bitcoin exchange-traded funds (ETFs) have fundamentally altered Bitcoin market dynamics, leading to reduced volatility and signaling an end to parabolic price surges and severe declines. Blockware BTC analyst Mitchell Askew indicated that the price dynamics before and after the introduction of Bitcoin ETFs are markedly different, as evidenced by a significant decrease in price volatility since January 2024. He forecasts that Bitcoin will reach $1 million over the next decade but will do so through a series of gradual price runs and consolidations, likely boring many investors in the process. Furthermore, reduced volatility is allowing Bitcoin to attract larger institutional investors as a viable currency option, although it may come at the cost of losing the dramatic price movements like the so-called 'God Candles.' With capital now more often sequestered within ETFs rather than being actively traded on-chain, there are concerns over potential centralization and diminished on-chain activity among retail investors, who are increasingly participating through managed financial products rather than holding Bitcoin directly.

Source 🔗