Since the debut of BlackRock’s IBIT, Bitcoin’s value has surged by an impressive 250%. However, the era of dramatic price spikes, often pursued by short-term traders, might be drawing to a close.
According to insights from Bloomberg analyst Eric Balchunas, the days of abrupt price surges and dips could be numbered. He suggests that the increasing presence of spot ETFs and large corporations is contributing to a stabilization of price fluctuations.
Spot ETF Approval Era
Balchunas highlighted IBIT’s recent achievement of surpassing $100 billion in assets under management, emphasizing its significance. This milestone, in his opinion, is highly indicative of the changing dynamics.
Following a substantial sale of 80,000 Bitcoins by Galaxy Digital, Bitcoin’s price hovered between $116,000 and $120,000, without triggering a panic-driven sell-off. Previously, a sale of this magnitude could have resulted in a double-digit percentage price decline. Now, significant corrections seem less probable.
This guy gets it. We’ve been saying same thing. Since BlackRock filing Bitcoin is up like 250% with much less volatility and no vomit-inducing drawdowns. This has helped it attract even bigger fish and gives it fighting chance to be adopted as currency. Downside is prob no more… https://t.co/0ECd5XevcO
— Eric Balchunas (@EricBalchunas) July 26, 2025
Short-term speculators once fueled substantial daily price swings of 20% or more in Bitcoin. However, consistent capital inflows from regulated investment products are attracting larger, more stable investors.
Balchunas contends that reduced volatility will enhance Bitcoin’s practicality for everyday transactions. He believes this evolution will help Bitcoin function more as a conventional currency rather than merely a volatile investment.
Institutional Steady Hands
According to Citigroup analysis, every $1 billion invested in Bitcoin ETFs could potentially elevate Bitcoin’s price by approximately 3.6%. Based on this projection, Citigroup anticipates Bitcoin could reach $199,000 by the year’s end.
This prediction hinges on the continued influx of capital. Major institutional investors typically commit substantial sums, and their investments tend to be more long-term compared to retail traders seeking short-term gains.
Citigroup also points out that IBIT by BlackRock has achieved the fastest growth to $100 billion among ETFs. This milestone underscores the considerable demand for crypto exposure among institutional investors.
If these trends persist, Bitcoin could potentially break out of its current trading range. It might even test new record highs, albeit without the explosive “God candle” movements that previously generated swift fortunes and equally rapid losses.
Volatility Trade‑Offs
Concurrently, some analysts suggest that early Bitcoin investors are realizing profits and reducing their positions. As institutional players enter the market, some seasoned traders may exit. This shift could redirect trading volume to less regulated platforms or complex derivatives markets. While the primary market may experience greater stability, risks could emerge in peripheral channels.
Reduced volatility translates to fewer dramatic price fluctuations. However, it also diminishes the excitement that attracts day traders. This trade-off may be acceptable to some, while others might be dissuaded by the decrease in potential for large, rapid gains.
Calmer Waters Ahead?
In summary, Bitcoin appears to be transitioning into a new era. According to Balchunas, although extreme price spikes are unlikely to vanish completely, they will become less frequent. The influence of spot ETFs and corporate investments is aimed at creating more gradual price movements.
Featured image from Meta, chart from TradingView
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