Bitcoin's Volatility Decline Attributed to Growing Economic Substance

Bitcoin's price volatility has decreased dramatically over the years, from a high of around 120 in 2017 to approximately 35 currently. This significant drop in volatility is largely due to the growing economic substance of bitcoin, driven by increasing institutional participation and options markets.

According to Trace Mayer, creator of the Mayer Multiple ratio, this development makes bitcoin more attractive to corporations, family offices, and institutional investors. Lower volatility, he argues, allows these entities to invest in bitcoin with greater confidence, as it is no longer perceived as a highly speculative asset.