TLDR
- Bitcoin is transitioning into a more stable asset class due to growing institutional adoption.
- Bloomberg analyst Eric Balchunas stated that God candles will become rare in the post-ETF era.
- Spot Bitcoin ETFs have reduced the frequency of dramatic price spikes and sharp drawdowns.
- Institutional investors are driving steady price growth and supporting long-term market stability.
- Citigroup analysts expect Bitcoin to reach $199,000 by year-end driven by continued ETF inflows.
The Bitcoin market is shifting toward a new phase marked by reduced volatility and institutional stability. According to Bloomberg analyst Eric Balchunas, this evolution will limit dramatic price surges commonly referred to as “God candles.” With ETFs and corporate involvement increasing, Bitcoin is entering a more mature financial environment.
Balchunas highlighted that the cryptocurrency’s behavior has changed significantly following the approval of spot Bitcoin ETFs. These new instruments brought a steadier inflow of capital while also reducing extreme price corrections. As a result, Bitcoin’s price movements are now less erratic and more predictable.
This guy gets it. We’ve been saying same thing. Since BlackRock filing Bitcoin is up like 250% with much less volatility and no vomit-inducing drawdowns. This has helped it attract even bigger fish and gives it fighting chance to be adopted as currency. Downside is prob no more… https://t.co/0ECd5XevcO
— Eric Balchunas (@EricBalchunas) July 26, 2025
This shift has helped Bitcoin attract larger institutional investors, who typically avoid high-risk, high-volatility assets. Their presence in the market has contributed to a more controlled price range. The result is fewer dramatic spikes but stronger long-term upward pressure.
Spot ETFs Reduce Volatility in Bitcoin Trading
Spot Bitcoin ETFs have redefined how the asset behaves in the broader market. With their launch, Bitcoin has experienced fewer sharp drawdowns and increased stability. The market reacted to large selloffs, like Galaxy Digital’s 80,000 Bitcoin sale, without extreme price drops.
This resistance to sharp downturns suggests ETFs now absorb much of the impact from sudden sell-offs. Balchunas noted that the asset has climbed over 250% since BlackRock introduced its IBIT ETF. Still, the growth occurred without the massive green price spikes previously seen.
The ETF-driven momentum continues as institutional interest expands across global markets. Bitcoin now moves steadily within tight price bands between $116,000 and $120,000. Experts link this stability to continued institutional accumulation and consistent ETF inflows.
Institutional Demand Drives Bitcoin’s Long-Term Climb
Driven by lower price fluctuations, Bitcoin is now viewed as a potential currency rather than just a speculative investment. Analysts at Citigroup project the cryptocurrency could reach $199,000 before year-end, thanks to ongoing ETF inflows. This view aligns with data suggesting that every $1 billion in ETF demand increases Bitcoin’s price by 3.6%.
BlackRock’s IBIT is expected to cross $100 billion in assets under management. If this occurs, steady capital inflow will support Bitcoin’s upward trajectory. While sudden gains may be rare, overall value appreciation remains on course.
Corporate treasury accumulation also supports long-term price growth. Meanwhile, some early whales are reducing their holdings due to changing market dynamics.
