He added that a 70% compound annual growth rate over that period is not likely to continue, but that even lower long-term returns \u2014 in the 20\u201335% range \u2014 would still beat stocks.<\/p>\n
\u201cI would be worried if Bitcoin\u2019s volatility drops to zero,\u201d he said, explaining why price swings can be a sign of an active market rather than a flaw.<\/p>\n
US Markets And Liquidity Strains Played A Role<\/h2>\n
Matthew Sigel, head of digital assets research at VanEck, said the sell-off<\/a> was mainly a US-session event. He linked the fall to tighter US liquidity and wider credit spreads, which made traders less willing to hold risky positions.<\/p>\n Sigel also noted that big spending plans tied to artificial intelligence were colliding with a fragile funding market, creating extra pressure.<\/p>\n Around year-end, other market participants face bonus decisions and portfolio reviews, which may add to selling pressure.<\/p>\n Analysts at Bitwise and other firms reported that Bitcoin\u2019s volatility has risen in the past two months and was creeping back up to about 60 as of Monday.<\/p>\n Jeff Park of Bitwise pointed out that higher volatility can move prices sharply in either direction. Based on reports, Pompliano and others said that volatility is needed for the asset to make large gains over time, and that calm markets would actually be a warning sign for some investors.<\/p>\n ETFs Brought More Money \u2014 And More Flows Out<\/p>\n The arrival of Bitcoin ETFs<\/a> has made it easier for big brokers\u2019 clients to get exposure without holding coins directly.<\/p>\n
\nVolatility Is Climbing Again<\/p>\n