The Golden Age of Bitcoin May Have Ended: According to Experts

Bitcoin has increased by 250% since BlackRock launched IBIT. But the giant green candles - the bullish moves that traders chase - may soon become a thing of the past. According to Bloomberg analyst Eric Balchunas, the era of sudden bullish or bearish shocks may be coming to an end. He believes that spot ETF funds and the participation of major companies will help balance out those downturns. Spot ETF Approval Period Balchunas pointed out that IBIT has just surpassed the milestone of 100 billion dollars in assets under management. In his view, that milestone speaks for itself. Bitcoin is trading in the range of 116,000 to 120,000 dollars after Galaxy Digital sold 80,000 coins. There was no panic sell-off that occurred afterwards. Before the ETF, such a sell-off could have caused prices to plummet with a double-digit percentage drop. Now, the likelihood of a deep correction seems less likely.

Profit hunters coming in and out continuously have previously pushed Bitcoin up or down by 20% or more in a single day. However, stable cash flow from managed products has attracted large investors. Balchunas argues that minimizing volatility will make cryptocurrencies more useful for buying coffee or paying bills. He believes this change will help Bitcoin function more like a real currency rather than just a highly volatile asset. The Steady Hand of the Organization According to a report from Citigroup, for every 1 billion dollars of ETF inflow, Bitcoin could increase by about 3.6%. Based on this calculation, Citi predicts that Bitcoin will reach 199,000 dollars before December 31. That forecast depends on a steady flow of capital coming in. Large funds place large bets. And those bets often last longer than individual investors pursuing quick profits. Citigroup noted that BlackRock's IBIT has become the fastest ETF to reach 100 billion dollars. This is significant as it shows how eager large companies are for cryptocurrency. If these trends continue, Bitcoin may break through the current trading range. It could even test new highs without the classic "holy candles" jumps, which bring fleeting fortunes—and quick losses. The Exchange of Volatility Meanwhile, some analysts warn that the first Bitcoin "whales" are taking profits and withdrawing. As investment institutions emerge, some traditional traders will leave. This could shift trading volume to less regulated markets or unusual derivative markets. In a more stable main market, risks may lurk within secondary channels. Lower volatility brings fewer heart-stopping moments. It also means a reduction in the thrill that attracts day traders. For some, that trade-off is worth it. For others, the loss of big swings may cause them to give up. Is There a Calm Sea Ahead? Overall, Bitcoin seems to be entering a new phase. According to Balchunas, those "God's candles" will not disappear overnight—but they will be very rare. The momentum from spot ETF funds and corporate treasury bonds aims to help prices fluctuate more smoothly.