Matrixport, a leading digital asset platform, has published a report highlighting how the launch of Bitcoin spot ETFs and increased Wall Street participation could lead to reduced volatility in Bitcoin markets. The analysis believes that there will be a potential shift in Bitcoin’s dynamics as institutional funds flow into the space. According to Matrixport’s chart report, Bitcoin’s 30-day realized volatility has averaged 58% over the past five years. Historically, this volatility has increased during bull and bear markets, such as the 2020/2021 bull run and the 2022 bear market. However, recent trends show an unusual decline in volatility even as Bitcoin makes significant gains in 2023 and 2024. Related News: Renowned Founder Says "The US Will Definitely Buy Bitcoin", Counts 5 Reasons The report suggests that Bitcoin spot ETFs play a crucial role in reducing volatility. By introducing Wall Street investors to BTC, these ETFs have increased institutional participation in the market. The presence of institutional investors, who tend to hold long-term positions, absorbs market fluctuations and provides a stabilizing effect on Bitcoin prices. “Low volatility allows institutional investors to take more risks,” the report said, adding that Bitcoin’s strong performance in recent years has further attracted Wall Street funds. Institutional buying has also reduced sharp declines in Bitcoin prices, creating a more stable market environment. This stability could encourage more inflows from traditional financial institutions, which could continue to reduce volatility and increase market predictability. *This is not investment advice. Continue Reading: Things are Very Different in Bitcoin from Previous Years, Analytics Company Says, Explains What’s Changed