Is TradFi taming Bitcoin's wild swings? Explore the intersection of traditional finance, BTC volatility, and forex lessons in the evolving crypto market.
TradFi, BTC Volatility, and Forex Lessons: Decoding the Crypto Landscape
Is Wall Street finally house-training Bitcoin? The buzz is that traditional finance (TradFi) might be smoothing out BTC's notorious volatility, turning it into something a little more...forex-like. Let's dive in.
TradFi's Influence on Bitcoin Volatility
Bitcoin's been hanging around $115,700, and the big question is: are TradFi inflows steadying Bitcoin's mood swings? Michael Saylor thinks so. He believes calmer price action is a good thing, attracting the big institutions. Think of it as Bitcoin growing up, products deepening, and liquidity flowing.
CME Group's crypto options notional open interest hit a record $7.1 billion on September 9th, led by Bitcoin contracts. That's a sign bigger players are hedging their bets. TradFi probably won't eliminate BTC volatility entirely, but it might smooth out the wild gaps, leading to more mean-reverting drift with occasional jolts.
Bitcoin's Cyclical Nature: Deja Vu All Over Again?
Trader Merlijn points out that Bitcoin's long-term chart echoes historical cycle patterns. Every major bull run since 2017 has had a mid-cycle
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