Bitcoin's Volatility Plummets, Stablecoins Surge
1min read Bitcoin's volatility hits record low, stablecoin transactions outpace Visa
Bitcoin's price volatility has reached an all-time low, signaling a maturing market and increased investor confidence. This development, coupled with the surge in stablecoin transactions surpassing Visa's payment volume, indicates a significant shift in the cryptocurrency landscape.
Standard Chartered's Geoffrey Kendrick predicts that Bitcoin could reach $500,000 by 2028, driven by improved investor access and decreasing volatility. The approval of U.S. spot Bitcoin ETFs and enhanced market infrastructure are expected to boost institutional inflows, marking a transformative period for the cryptocurrency.
Kendrick emphasizes that as volatility declines, Bitcoin's share in an optimized investment portfolio increases, making it an attractive option for institutional investors. The bank forecasts that Bitcoin could hit $500,000 by 2028, led by institutional inflows and ETF developments, which will boost investor access and reduce volatility.
The introduction of exchange-traded funds (ETFs) is set to radically enhance the accessibility of Bitcoin for a broader range of investors. Kendrick expects Bitcoin to undergo a similar trajectory to gold, which quadrupled in price following the launch of ETPs in 2004. As the ETF market matures, the accessibility for institutional investors will increase, thereby creating a more robust demand for Bitcoin and leading to potential price appreciation.
Kendrick asserts that as more sophisticated financial instruments, such as options markets, emerge, the volatility surrounding Bitcoin is likely to diminish. This trend of declining volatility is pivotal as it not only attracts fresh capital but also enhances the quality of market inflows. "As volatility decreases, Bitcoin's allocation in a diversified portfolio becomes more attractive," Kendrick explained, suggesting that lower risk profiles will play a vital role in institutional adoption of the cryptocurrency.
Further bolstering the case for Bitcoin's impending rise, Kendrick points to supportive regulatory changes under the current administration. The repeal of SAB 121, which previously imposed accounting constraints on companies holding digital assets, has paved the way for increased institutional participation. Additionally, initiatives from the Trump administration, such as a potential national digital asset stockpile, may influence central banks to explore Bitcoin as an investment.
Standard Chartered anticipates a steady growth trajectory for Bitcoin, targeting a 
