According to Bloomberg analyst Eric Balchunas, Bitcoin's volatility is decreasing due to the increasing adoption of spot ETFs and institutional investor involvement.
The Era of 'God Candles' Fades
At a conference held on July 26, 2025, Eric Balchunas noted that the time of sharp price increases in Bitcoin, called 'God Candles,' is coming to an end. This is attributed to the rising number of accepted spot ETFs and the growing interest of institutional investors in the cryptocurrency market.
The Role of ETFs in Changing Market Dynamics
With the transition from dramatic price changes to steadier fluctuations, spot ETFs play a significant role in encouraging institutions to engage more actively in Bitcoin markets. This leads to reduced volatility and increased confidence from larger players.
The Future of Bitcoin and Institutional Investments
According to Eric Balchunas, the inflow of ETFs and institutional participation are defining a new era for Bitcoin. He emphasizes that with increasing capital inflows and diminishing volatility, Bitcoin may become more attractive to the mass investor and feel less impact from large trades on its price.
Thus, the gradual decrease in Bitcoin's volatility associated with increased institutional investments and the adaptation of ETFs may lead to its broader acceptance in financial markets.
