Amidst the backdrop of international tensions and bombings, Bitcoin remained more stable than traditional stocks. We explain how and why the cryptocurrency weathered the impact better.
As tensions in the Middle East escalated with clashes between Iran and Israel and US bombings rocked the international scene, few would have expected Bitcoin to show unusual strength against traditional markets.
During this critical period, Bitcoin's value declined moderately by around 6%, falling just below $100.000, with daily liquidations exceeding $1.000 billion. However, what was truly striking was not the decline itself, but rather that the cryptocurrency demonstrated considerably lower volatility compared to major US stock indices, such as the S&P 500 or the Nasdaq, which experienced much more severe fluctuations.
BUY BITCOIN WITH CONFIDENCEAt present, Bitcoin is trading above $105.000, showing surprising stability and rapid recovery, in an environment that was anything but calm for stocks.
Source: CoinGecko
Bitcoin's Maturity: Stability, Demand, and Rising Institutional Support
Digging deeper into volatility, Bitcoin's 60-day realized volatility figure hovers around 27-28%, which is admirably low compared to the S&P 500's volatility of around 30%, the Nasdaq 100's volatility of around 35%, and major tech assets that are as high as 40%.
This context is even more impressive when one remembers that Bitcoin's volatility has historically been much higher, especially in times of global crises such as the start of the Russia-Ukraine conflict in 2022, where volatility reached between 60 and 65%. Therefore, several analysts agree that this new stage of stability suggests a growing maturity of the digital asset, reflecting that Bitcoin investors no longer act in immediate panic in the face of crises, but have developed a more solid and rational perspective on market fluctuations.
André Dragosch, head of research at Bitwise Europe, emphasized this point, noting that while overall market sentiment has turned bearish, the structure and overall outlook remain intact.
Dragosch shared a post on X highlighting that Structural demand for Bitcoin has not declined and remains a key factor supporting the price. This is reflected in the continued influx of cash exchange-traded funds (ETFs) and growing institutional interest. Both public and private entities are showing an increase in their attention toward this digital asset, also evidenced by legislative progress in the United States, where states like Texas have just passed a Bitcoin Strategic Reserve Act, joining Arizona and New Hampshire in this initiative that underpins the formal recognition and use of the cryptocurrency.
More investors are confident in the long term
Market data reinforces this perception of maturity and stability in the Bitcoin market. According to Glassnode, there is a notable increase in the number of long-term holders, with control of approximately 14,53 million BTC, representing nearly 70% of the cryptocurrency's maximum supply of 21 million. This long-term accumulation phenomenon favors less selling pressure and contributes to a more robust market.
Furthermore, the fact that over 30% of the circulating supply is held by just 216 centralized entities, including ETFs, exchanges, and custodians, contributes to a reduction in the circulating supply of Bitcoin, which helps stabilize the price and counteract its inherent volatility.
This scenario underscores how Bitcoin has evolved beyond its image as a highly speculative asset. It is now increasingly emerging as an established asset class, with distinctive characteristics compared to traditional stocks. Its design, global use, and current market structure give it a resilience that would have been difficult to imagine in its early stages.
TRADE SAFELY WITH BITCOINToday, beyond its role as a refuge in times of uncertainty, Bitcoin offers users a solid alternative which combines a certain predictability with opportunities within a still high, but more manageable, risk profile.
Bitcoin Today: A Strategic Asset Gaining Confidence and Maturity
Bitcoin's evolution also reflects the shift in market perception. While it was previously viewed primarily as a volatile and unpredictable instrument, the growing inclusion of institutional players and the adoption of regulations are driving a transformation towards a more organized and mature ecosystemPolitical initiatives and new regulations in various US states demonstrate this process, generating greater trust among participants and improving accessibility for users seeking stability and security in their digital asset transactions.
Furthermore, the growing number of long-term holders reflects renewed and solid interest, reducing the pressure of impulsive selling. With more than 30% of the supply in institutional hands, Bitcoin gains an anchor of stability that helps mitigate sharp market fluctuations. Even in times of geopolitical crisis, when traditional markets are shaken, Bitcoin begins to show greater and noticeable resilience, differentiating itself as an alternative safe haven.
In short, Bitcoin is not only surviving the ups and downs of the market, but is advancing towards a maturity that positions it as an increasingly strategic and reliable asset.
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