Bitcoin’s crashes are shrinking, and Wall Street is starting to notice
Bitcoin's price drawdowns are decreasing, signaling market maturation and attracting increased institutional investment.Summary
Bitcoin’s historically volatile boom-and-bust cycles are showing signs of stabilizing, with recent price declines around 50% compared to previous drops of up to 90%. Analysts like Jason Fernandes of AdLunam and Zack Wainwright of Fidelity Digital Assets attribute this to increasing liquidity and institutional participation, suggesting a maturing market structure. While some, like Bloomberg’s Mike McGlone, predict potential drops to $10,000, the trend indicates a shift from questioning Bitcoin’s legitimacy to optimizing its allocation within portfolios. Bitcoin is increasingly viewed as a portfolio 'efficiency enhancer' due to its high returns and improving risk-adjusted measures, despite its inherent volatility. As drawdowns shrink, returns are expected to normalize, transforming Bitcoin from a venture-style bet into a more conventional macro allocation.
(Source：CoinDesk)