Bitcoin’s Role Evolves Amidst Decreasing Volatility

Bitcoin’s Role Evolves Amidst Decreasing Volatility

Philippe Laffont of Coatue Management highlights Bitcoin’s transition into a core asset with diminished volatility at the Coinbase Crypto State Summit in New York City, June 2025.

Bitcoin’s declining volatility

Bitcoin’s declining volatility plays a pivotal role in shifting its market position from speculative asset to core portfolio component, emphasized by Philippe Laffont at a recent summit. Philippe Laffont, associated with Coatue Management, stated that the narrowing Beta value of Bitcoin is reducing entry costs and volatility, encouraging long-term stability in the market.

“What interests me is that perhaps… the cost of entering Bitcoin is becoming smaller. If its Beta value (measuring an asset’s volatility relative to the market) narrows, that would be very meaningful.”

Philippe Laffont, Founder, Coatue Management – source

Institutional changes

Institutional changes led by prominent firms like BlackRock are boosting Bitcoin’s market legitimacy and appeal, particularly due to their ETF initiatives. Bitcoin’s adoption as a stable investment option now draws more institutional players, reflected by increasing ETF activities and reduced market supply pressure.

Market behavior evolution

Market behavior evolution, with more long-term holders and fewer swing traders, reflects an increase in investor confidence and a shift towards long-term asset management. Historical trends show Bitcoin’s stabilization, supported by lower volatility and institutional moves, often leading to rising price floors and increased acceptance.

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