Market Analysis: Bitcoin is increasingly aligning with the fundamentals of store of value.

Gate News bot news, according to The Daily Hodl citing a guest article from HodlX, Bitcoin increasingly aligns with the fundamentals of store of value, but emphasizes that Bitcoin is still widely regarded as a highly volatile risk asset.

The article states that the core criticism of Bitcoin as a store of value focuses on its fluctuation. However, fluctuation is not constant—it evolves with the adoption of Bitcoin and market integration.

In the 1970s and early 1980s, after the collapse of the Bretton Woods system, gold was re-monetized, leading to severe fluctuations in gold prices.

Similarly, Bitcoin also experienced fluctuations in its early stages and found its place in the financial sector. However, this volatility is continuing to decline.

In 2024, Fidelity pointed out that the volatility of Bitcoin is lower than that of 33 stocks in the S&P 500 index. As the asset class matures and its market capitalization grows, its volatility has been steadily decreasing.

In 2025, this trend will continue, and the peaks of volatility will decrease.

Therefore, Bitcoin now offers stability rather than explosive growth, with its compound annual growth rate being closer to gold and other stores of value.

The increasing institutional adoption and liquidity of Bitcoin are key drivers of this transformation. Over the past year, Bitcoin's market depth in the spot market has grown by 60% to 2%.

Most of them come from exchanges in the United States, which are increasingly focusing on institutional clients. This has also led to the trading volume of Bitcoin becoming more concentrated during US trading hours.

Another factor is the increasing advantage of long-term holders, especially during each new four-year halving cycle.

These holders generally show indifference to daily price fluctuations, exhibiting relatively passive market behavior.

This means that the narrative around Bitcoin as a store of value is gradually replacing the narrative focused on short-term speculation.

Bitcoin is still widely regarded as a highly volatile and risky asset, and this is not without reason. However, to ignore its evolution into a legitimate store of value would be a grave oversight.

No other asset has attempted to achieve this status, let alone come close to it.

However, the journey of Bitcoin is far from over. Investors may need to regularly reassess their views.

Many of the perspectives that once defined Bitcoin are now outdated. Instead of reiterating old paths, it's better to reevaluate with a long-term vision.