The era of extreme ‘boom-bust’ cycles for Bitcoin may be coming to an end, according to a recent report by asset management firm WisdomTree. The study suggests that the cryptocurrency market is undergoing a fundamental transformation as institutional investors take a more dominant role. Traditionally characterized by wild price swings driven largely by retail sentiment and speculation, Bitcoin’s landscape is being reshaped by the introduction of spot Bitcoin exchange-traded funds (ETFs) and increased regulatory oversight. WisdomTree notes that the entry of major financial institutions has brought a new level of sophistication and liquidity to the market, which could lead to more stabilized price movements over time. While volatility will not disappear entirely, the influence of professional money managers is expected to temper the dramatic crashes seen in previous years. Furthermore, the report highlights that Bitcoin is increasingly viewed as a legitimate component of diversified investment portfolios rather than a fringe speculative asset. As institutional adoption continues to accelerate following the 2024 halving event, the market structure is evolving toward a ‘new normal’ where long-term value preservation and strategic allocation outweigh short-term hype.
Source: Bitcoin ‘Boom-Bust’ Era Is Over as Institutions Take the Lead: WisdomTree
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