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An analysis suggests that the era of extreme volatility and massive crashes in Bitcoin (BTC) is coming to an end, marking the beginning of its settlement as an institutionally driven mainstream asset.
According to Yahoo Finance on February 16 (local time), Galaxy Digital CEO Mike Novogratz declared in a recent interview that Bitcoin’s cycle of dramatic surges and plunges has now ended. Novogratz emphasized that in the past, when Bitcoin experienced price drops of more than 80%, the market was largely speculative and driven by retail investors, whereas today institutional investors controlling massive capital have taken the lead.
The launch of spot Bitcoin ETFs and participation by major financial institutions have fundamentally changed the market structure. Novogratz explained that capital flowing in through asset managers such as BlackRock and Fidelity is providing strong downside support for Bitcoin’s price. Because institutional investors manage assets with a longer-term perspective than retail investors, the likelihood of panic-driven mass sell-offs like those seen in the past has significantly diminished.
Pro-cryptocurrency policies under U.S. President Donald Trump’s administration and discussions of a strategic Bitcoin reserve are also cited as key factors supporting market confidence. Novogratz գնահատed that the mere fact that the U.S. government has begun considering Bitcoin as a national reserve asset has decisively enhanced its credibility as an asset. These political shifts are elevating Bitcoin beyond digital gold to a strategic asset at the national level.
As the era dominated by retail speculative frenzy fades and Bitcoin solidifies its position in the mainstream capital markets, price volatility is expected to gradually ease. Novogratz noted that Bitcoin has reached a stage where it is becoming an essential component of portfolios across global financial institutions. For investors who remember past crashes, the current market environment is increasingly viewed not as a high-risk asset class but as an essential store of value.
Ultimately, Bitcoin appears to have entered a long-term upward growth trajectory within the stable supply-and-demand framework of institutional finance. Financial experts predict that Bitcoin will stand alongside traditional asset classes such as stocks and bonds, functioning as a core pillar of the capital markets. As a major shift in global capital flows begins, investors worldwide are watching closely to see the new market order Bitcoin will shape.
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