Bitcoin has been known for its volatility since it launched in 2009, with massive price fluctuations that have left many investors on edge. However, a recent episode of Cointelegraph’s Crypto Trading Secrets podcast featured an interesting perspective from trader, analyst, and author @BigCheds, who goes by the name Cheds on Twitter. Cheds believes that as Bitcoin becomes more institutionalized and integrated into everyday life, its price volatility will wane over time.
During the podcast, when asked about Bitcoin’s volatile price during bull and bear markets, Cheds responded, “Definitely. I think the more institutionalized it is, the more it becomes part of everyday life and more just part of the system. I think the volatility will wane over time — I definitely do.” This view suggests that Bitcoin’s extreme price swings could decrease as more players such as MicroStrategy and Tesla invest in the asset, and it becomes further integrated into mainstream financial systems.
Cheds also shared his thoughts on the concept of Bitcoin’s bull runs, stating that technical price trends offer a better depiction of what’s happening. He distinguishes between a “bull run”, which is a subjective narrative, and an “uptrend”, which is a technical term based on what the price is doing. He believes that while people might interpret the term ‘bull run’ differently, an uptrend is a more objective description of Bitcoin’s price movements, and this offers a clearer picture of what is happening in the market.
Cheds’ views are interesting, given Bitcoin’s tumultuous past, with the asset surging from below $300 to almost $20,000 in 2017 before crashing back down below $4,000 in 2018, according to Cointelegraph’s BTC Price Index. Bitcoin recovered over the following years, reaching nearly $70,000 in April 2021 before falling back below $16,000 later in the year.
While the reasons behind Bitcoin’s volatility are complex, Cheds’ comments about the asset’s growing institutionalization and integration into mainstream financial systems could offer hope for investors worried about the wild price swings. Institutional backing of Bitcoin, or more widespread usage in everyday life, may help to stabilize its price over time.
However, Cheds also admitted that forecasting the future of Bitcoin’s price was challenging, saying he was “agnostic” on where it would go. Instead, he suggested focusing on one’s trading strategy and managing risk, as this is the key to long-term success.
In summary, while Bitcoin’s volatility has created opportunities for savvy traders to make profits, it has also been a source of uncertainty and caution for many investors. Cheds offers a new perspective on the future of Bitcoin’s price movements, suggesting that as the asset becomes more integrated into mainstream systems, its price volatility could decrease. Nonetheless, he recognizes that predicting future price movements is challenging and has emphasized the importance of a sound trading strategy and risk management for investors.
