"Bitcoin volatility shrinks to 38%... Speculative funds move to Ethereum"

As the volatility of Bitcoin (BTC) has sharply decreased, reports indicate that short-term investors are turning their attention to Ethereum (ETH).

According to Bloomberg on the 22nd (local time), Bitcoin's volatility has dropped from previous levels as high as 200% to the current 38%. This is a similar level to some large-cap stocks such as Starbucks and Goldman Sachs. Some observers note that Wall Street's 'buy and hold' approach is contributing to increased stability in the Bitcoin market.

As Bitcoin's price volatility increasingly resembles that of 'blue-chip assets,' funds seeking short-term profits are heading to Ethereum. Recently, Ethereum spot ETF trading volumes have surpassed Bitcoin's several times.

Jeff Dorman, CIO of Arca, explained, "Recent trading activity is focused on Bitcoin and Ethereum," adding, "Bitcoin is increasingly being regarded as a long-term holding asset, while Ethereum remains exposed to high volatility."

Meanwhile, some experts are cautioning about a short-term correction in Ethereum. Arthur Azizov, founder of B2 Ventures, analyzed, "ETH may stay within the $3,900~4,400 range short-term," and warned, "If leveraged liquidations occur, it could fall to the low $3,000s."

Bradley Duke, Head of Europe at Bitwise, also commented, "Ethereum has entered a risk-off phase," and noted, "While there is the possibility of a short squeeze in the short term, many institutional investors are instead preparing for a correction."

The outlet commented, "In past cycles, Bitcoin and Ethereum both led the uptrend together, but this time, the market's focus is narrowing to just these two assets," and added, "While Bitcoin serves as a stable anchor, Ethereum is absorbing the market’s volatility."