Bitcoin’s volatility has reached its lowest in 563 days, indicating its maturation as a global financial asset. The cryptocurrency has surpassed $1.87 trillion in market capitalisation, making it the seventh-largest asset globally. Analysts note a decline in exchange deposits, suggesting reduced selling pressure. Arthur Hayes predicts Bitcoin could hit $1 million by 2028, attributing this to aggressive monetary policies and institutional interest, while Cathie Wood’s comments suggest a bullish outlook for Bitcoin’s future.
Bitcoin (BTC) is currently exhibiting the lowest level of price volatility seen in over 500 days, indicating its maturation as a significant global financial asset. According to research from Vetle Lunde, head of research at K33 Research, the weekly volatility reached a 563-day low as of April 30. This decline suggests a potential stabilisation in prices, making Bitcoin a more reliable investment option.
Furthermore, Bitcoin’s market capitalisation has surged to approximately $1.87 trillion, positioning it as the seventh-largest asset worldwide—surpassing traditional investments like Silver and even large corporations such as Meta and Saudi Aramco, as reported on Companiesmarketcap. This growth in market value underlines Bitcoin’s traction within the investment landscape.
Moreover, analysts at Bitfinex have observed a significant drop in Bitcoin exchange deposits, reinforcing the idea of reduced selling pressure coupled with increased confidence among long-term investors. They noted that this phenomenon—where price stability coexists with declining exchange balances—is particularly crucial, especially after a recently concluded $7.2 billion options expiry which heightened macroeconomic fluctuations.
This recent analysis coincided with a noteworthy development: BlackRock’s Bitcoin exchange-traded fund (ETF) garnered $970 million in inflows, marking its second-largest investment day ever, which could potentially signal a shift in institutional sentiment towards Bitcoin, as highlighted by Cointelegraph on April 29.
In a further boost to the bullish narrative, BitMEX co-founder Arthur Hayes has stated that Bitcoin could reach a staggering $1 million by 2028. In his keynote at Token2049 in Dubai, he linked this potential surge to aggressive monetary policies and burgeoning interest from institutional investors. “It’s time to go long everything,” he asserted, while also hinting at a significant rally possibly driven by increased money supply from the US Treasury.
Hayes, on April 21, suggested that possible US Treasury buybacks could act as a catalyst for Bitcoin’s price, hinting that this might be the last opportunity for investors to acquire Bitcoin below the $100,000 threshold. Treasury buybacks refer to the practice where the US Treasury repurchases its bonds to enhance liquidity or manage federal debt, which could potentially influence Bitcoin’s trajectory.
Other industry voices are echoing this optimism. Cathie Wood, CEO of ARK Invest, has indicated that the likelihood of Bitcoin surpassing $1.5 million by 2030 has increased due to its growing adoption among institutional investors. As she noted, many institutions are adjusting their portfolios to include Bitcoin, which is seen now as a viable addition alongside more traditional asset classes.
In essence, for Bitcoin to potentially reach that $1.5 million mark, it would need to achieve an average compound annual growth rate of 58% over the next five years. This kind of growth, albeit ambitious, reflects a growing faith in Bitcoin’s potential to reshape the financial landscape over the coming years.
