Bitcoin's Price Volatility Seen as Normal by Early Architect Adam Back

Bitcoin's recent price drop has left investors frustrated, but one of its early architects sees it as a normal part of the market cycle. Adam Back, CEO of Blockstream and the Bitcoin Standard Treasury Company, attributed the volatility to the asset's adoption phase.

In an interview at the iConnections conference in Miami Beach, Back noted that bitcoin is generally volatile and has historically seen price runs lower during certain phases of its four-year market cycles. He suggested that some market participants may be trading around this historical pattern rather than reacting to fundamentals.

Back also pointed out that institutional adoption remains early, with large pools of capital yet to fully enter the market despite regulatory hurdles being resolved. He expects broader adoption to reduce volatility over time, comparing bitcoin's current phase to early high-growth equities like Amazon.