Market sentiment has turned bearish, with expectations of Ethereum dropping to $4,200-$4,300 and Bitcoin testing $116,000-$118,000. A divide persists between short-term bearish traders and long-term bullish holders, focusing on whether Bitcoin's reduced volatility and institutionalization signal maturity or weakness.
The debate centers on Bitcoin's loss of its unique upward volatility since the introduction of IBIT options, with the asset now resembling traditional stocks. Critics highlight Bitcoin's annual compound growth rate of just 10% since its 2021 peak, underperforming many traditional assets like French and UK ETFs, marking a historical opportunity cost for holding Bitcoin. Conversely, proponents argue for a broader time frame, likening Bitcoin's scarcity to gold's decade-long consolidation at $2,000 before its recent breakout, asserting that institutionalization won't alter its long-term trajectory towards $1 million, driven by design and inevitable monetary expansion.
Bitcoin Volatility Debate Intensifies Amid Market Sentiment Shift
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