‘Parabolic bull markets and devastating bear markets are over’

Bitcoin () will no longer experience “parabolic” price rallies or “devastating” bear markets, because BTC exchange-traded funds (ETFs) have permanently reduced volatility and altered market dynamics, according to Blockware BTC analyst Mitchell Askew.

“BTC/USD looks like two entirely different assets before and after the ETF,” the analyst on Friday. The chart he shared showed a sharp reduction in price volatility following the January 2024 in the United States. The analyst said:

“The days of parabolic bull markets and devastating bear markets are over. BTC is going to $1million over the next 10 years through a consistent oscillation between ‘pump’ and ‘consolidate.’ It will bore everyone to death along the way and shake the tourists out of their positions.” 

Senior Bloomberg ETF analyst Eric Balchunas that the reduced volatility has helped Bitcoin “attract even bigger fish and gives it a fighting chance to be adopted as currency.”  The tradeoff to this is that there will likely be no more “God Candles,” the analyst added.

The on market dynamics continue to be debated by market analysts, as the investment vehicle further intertwines traditional finance, institutional investors, and digital asset markets.

Related:

Bitcoin ETFs sequester capital into traditional investment vehicles that currently and keep funds off-chain.

This stowing away of capital can , which crypto investors have come to expect from previous market cycles.

In July, net inflows into Bitcoin ETFs , though the surge of capital into Bitcoin has not translated to increased onchain activity.

Retail investors are and gaining exposure through traditional financial instruments held by a fund manager or another financial fiduciary on their behalf, rather than holding BTC directly, according to analysts.

The demand for paper BTC and products like BlockRock’s Bitcoin ETF has led the asset manager to , raising concerns about centralization among some market participants.

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