bitcoinlfg

Tag: stability

  • Glassnode report reveals Bitcoin’s growing stability amid ETF activity and RWA expansion

    Glassnode report reveals Bitcoin’s growing stability amid ETF activity and RWA expansion

    Glassnode report reveals Bitcoin’s growing stability amid ETF activity and RWA expansion

    • Bitcoin’s 2025 cycle shows rising institutional flows, lower volatility, and deeper liquidity.
    • Tokenized real-world assets surge to $24 billion, boosting institutional adoption and on-chain activity.
    • ETFs reshape Bitcoin liquidity as stablecoins remain key rails in a more mature digital asset market.

    Bitcoin’s latest cycle is developing under a very different market structure, with data from Glassnode and Fasanara Capital pointing to deeper institutional participation, rapid growth in tokenized real-world assets, and a notable drop in volatility.

    Their Q4 Digital Assets Report highlights how Bitcoin’s behaviour has shifted as regulated investment channels expand, and liquidity becomes more stable across spot, derivatives, and on-chain markets.

    The findings show how ETF flows, settlement activity, and broader adoption of tokenised instruments are shaping a more mature phase in the digital asset ecosystem.

    These structural changes are defining how capital moves through Bitcoin in 2025.

    Institutional flows reshape the cycle

    The report estimated that Bitcoin has absorbed around $732 billion in new capital during this cycle.

    This has occurred alongside a clear decline in one-year realised volatility, which has fallen by nearly half.

    Glassnode linked this trend to increased depth across major markets and a larger share of trading driven by institutional strategies.

    Glassnode also reported that Bitcoin settled approximately $6.9 trillion over the past 90 days.

    This puts Bitcoin in a range comparable to payment networks such as Visa and Mastercard.

    Even with more trading moving into ETF and brokerage channels, the report found that Bitcoin and stablecoins still dominate value transfer on public blockchains.

    ETF channels deepen liquidity

    ETF-linked demand has reshaped how investment enters and exits Bitcoin.

    Instead of relying mainly on on-chain movement or exchange activity, a greater share of flows now passes through regulated investment vehicles.

    According to the report, this shift has encouraged smoother liquidity conditions and fewer sharp price changes in spot markets.

    Traditional market makers and arbitrage firms have increased their presence due to ETF participation.

    Their involvement has tightened spreads and reduced disruption during periods of heightened selling pressure.

    This development reflects a broader alignment between digital asset markets and established financial infrastructure.

    Tokenized RWAs accelerate

    Tokenized real-world assets have expanded from $7 billion to $24 billion within one year.

    Glassnode stated that this rise reflects stronger institutional demand, including interest from pension funds, hedge funds, and corporations that want on-chain exposure to familiar financial instruments.

    Tokenized funds have gained momentum as asset managers test new distribution models and investors seek simplified access to traditional assets.

    Platforms involved in tokenised RWAs have strengthened custody, settlement, and compliance systems.

    This foundation has encouraged consistent inflows throughout 2025, supporting a growing segment of the market that links traditional assets with blockchain settlement rails.

    Stablecoin role strengthens

    Glassnode described the market structure as larger and more stable than in previous cycles.

    The data indicated deeper liquidity across spot, derivatives, and on-chain channels, which has contributed to a more measured trading environment.

    Reduced volatility has become a defining feature of the cycle, shaped by institutional trading strategies that tend to use steady allocation models.

    Stablecoins continue to serve as key connectors between traditional and digital financial systems.

    The report stated that stablecoin settlement demand remains substantial across centralised and decentralised platforms.

    Glassnode characterised the dual-rail system created by stablecoins and traditional infrastructure as a permanent part of the ecosystem, supporting both institutional flows and retail trading activity.

    Analysts referenced in the report expect institutional participation to expand as tokenised funds gain broader acceptance.

    Glassnode presented this phase as a turning point marked by heavier institutional flows, rising tokenisation, and reduced volatility.

    These factors suggest that Bitcoin and the wider digital asset sector are moving into a more structurally mature environment in 2025.

    Share this article
    Categories
    Tags

    Source link

  • Bitcoin’s surge to record highs signals potential shift toward stability, says Deutsche Bank

    Bitcoin’s surge to record highs signals potential shift toward stability, says Deutsche Bank

    Bitcoin

    • Bitcoin hit a record high above $123,000, with Deutsche Bank noting a rare drop in volatility alongside the rally.
    • Analyst Marion Laboure sees signs of Bitcoin maturing as an asset, supported by regulatory clarity and institutional adoption.
    • Despite a short-term pullback, broader macro and micro factors point to a more stable, long-term trend for Bitcoin.

    Bitcoin may be entering a new phase of greater price stability, according to a recent analysis by Deutsche Bank.

    The cryptocurrency reached a record high above $123,000 on Monday, marking a roughly 75% gain from its levels in mid-November.

    Deutsche Bank analyst Marion Laboure noted that the sharp appreciation has been accompanied by a historic drop in volatility — an unusual but telling combination.

    “While excitement over the upcoming legislations has spurred Bitcoin’s sharp appreciation, it is notable that Bitcoin’s rise has also been accompanied by a historic decline in volatility levels,” Laboure wrote in a note to clients on Tuesday.

    She suggested this may point to an emerging decoupling of Bitcoin’s spot price from its traditional volatility, hinting at the digital asset’s evolution toward a more stable asset class.

    Laboure cited growing market adoption, clearer regulatory frameworks, and increased institutional involvement as contributing factors to this stabilization trend.

    Together, these dynamics are helping to shift Bitcoin away from the high-churn, speculative cycles that have historically defined its behavior.

    Regulatory and institutional tailwinds

    The record-breaking price movement comes as US lawmakers gathered for the “Crypto Week,” which investors hope will pave the way for a more supportive regulatory environment.

    While crypto legislation has long been a point of debate in Washington, proponents see this week’s discussions as a potential inflection point that could attract greater participation from institutional investors.

    In her analysis, Laboure emphasized the convergence of macro and micro factors currently driving Bitcoin’s performance.

    On the macro side, she pointed to rising geopolitical tensions, shifts in global trade policies including tariffs, and ongoing de-dollarization trends as adding complexity to traditional markets, making Bitcoin more attractive as an alternative asset.

    On the micro level, she highlighted the increasing participation of institutional investors and longer-term holding patterns among market participants.

    These trends, according to Laboure, suggest that Bitcoin’s role in portfolios is maturing.

    Rather than serving solely as a speculative tool, it is gradually being integrated into broader investment strategies.

    Short-term pullback, long-term outlook

    Despite the strong rally, Bitcoin experienced a modest retreat of over 2% in midday trading on Tuesday, falling back to around $117,000.

    However, Laboure cautioned against reading too much into short-term fluctuations, reiterating that broader adoption and regulatory clarity remain key pillars supporting the current trajectory.

    “Volatility remains inherent,” she acknowledged.

    However, the emerging conditions, from legislation and market structure to investor behavior, “suggest Bitcoin’s integration into portfolios is maturing, and potentially signals a more sustainable trend beyond previous instances of short-term market speculation.”

    As institutional interest deepens and the regulatory landscape evolves, analysts like Laboure believe Bitcoin could continue to see upward momentum while exhibiting more stable price behavior — a significant shift for an asset historically defined by extreme swings.
    Share this article
    Categories
    Tags

    Source link

  • Vancouver mayor proposes Bitcoin as city reserve asset for stability

    Vancouver mayor proposes Bitcoin as city reserve asset for stability

    Vancouver mayor proposes Bitcoin as city reserve asset for stability
    • Vancouver Mayor Ken Sim proposes Bitcoin as a reserve asset to protect purchasing power.
    • Jeff Booth supports Ken Sim’s proposal, recognizing Bitcoin’s potential as a strategic asset.
    • Former USA CFTC Chairman Giancarlo advocates for Bitcoin reserves, likening it to gold.

    Vancouver Mayor Ken Sim has introduced a bold proposal to explore Bitcoin as a reserve asset for the city, aiming to diversify its financial resources and safeguard its purchasing power.

    The motion, titled “Preserving the city’s purchasing power through diversification of financial resources: Becoming a Bitcoin-friendly city,” is scheduled to be officially presented to the Vancouver City Council on December 11, 2024. The proposal marks a significant shift toward cryptocurrency adoption by a major city government.

    Protecting Vancouver from economic shocks using Bitcoin

    In his motion, Mayor Sim seeks to investigate how Bitcoin could help protect Vancouver from economic volatility and inflation by adding it to the city’s reserves.

    It comes amid growing interest in Bitcoin as a reserve asset at the government level, particularly in the United States. Several US lawmakers have recently proposed holding Bitcoin in public financial reserves, highlighting the increasing consideration of cryptocurrency in national economic strategies.

    Although the full text of the proposal has not yet been made available, Bitcoin advocate Jeff Booth voiced support for Mayor Sim’s plan during a discussion on X Spaces on November 26, 2024. Booth described the motion as an important step in recognizing Bitcoin’s potential as a strategic financial asset for the city.

    Former CFTC chairman supports a Bitcoin reserve in the USA

    Meanwhile, Christopher Giancarlo, the former Chairman of the US Commodity Futures Trading Commission (CFTC), has been vocal about the potential for Bitcoin as a strategic reserve asset for the US.

    In a recent interview, Giancarlo referred to Bitcoin as the “world’s first digital commodity,” noting its similarities to traditional commodities such as gold, oil, and copper, which nations have historically hoarded. He praised the idea of a national Bitcoin reserve, emphasizing its potential to provide long-term financial stability in an increasingly digital economy.

    Giancarlo also acknowledged concerns about Bitcoin’s speculative nature but drew parallels to the dot-com bubble, where early-stage speculation gave way to technological breakthroughs that revolutionized industries. He believes the same evolution could occur with blockchain and Bitcoin technology, making it a forward-looking move for governments and financial institutions.

    Share this article
    Categories
    Tags

    Source link