Institutional Investors Shift Towards Bitcoin as Volatility Falls

Investors have been pulling their money out of US-based crypto funds for nine consecutive days, but despite this, Bitcoin's volatility has decreased to levels comparable to gold. According to Arkham, investment giant BlackRock transferred a large batch of assets worth $180 million in Bitcoin to Coinbase Prime on May 29.

This sell-off is largely attributed to the Federal Reserve's restrictive policy and rising US Treasury yields, which have caused institutional players to take profits out of Exchange-Traded Funds (ETFs). However, this prolonged sell-off has led to an unexpected shift in the market, with Bitcoin's volatility falling to 34.177% over a 60-day period.

Meanwhile, gold ETF GLD has seen its volatility rise to 27.227%, resulting in a narrow gap of just 7% between the two assets' fluctuations. Bloomberg senior ETF analyst Eric Balchunas notes that this change is crucial for the long-term viability of cryptocurrency, which is often overlooked in the press.