So, to cut the story short, are we heading towards a more stable Bitcoin price now that institutional investors are entering the market? And if that’s the case, will the market become "boring," with less volatility as the pump-and-dump behavior fades? What are your thoughts on this?.....
That has been happening, bitcoin is gradually becoming more stable over time and we can easily see that through its yearly growth chart. Bitcoin's returns have been decreasing over time and it wouldn't be surprising if Bitcoin one day becomes as stable and less volatile as gold. But in return, that would make bitcoin safer like gold is today.
The more mature Bitcoin becomes, the less volatile it becomes, and that makes it less attractive to speculators looking to get rich quickly. But it will become the preferred choice of those looking for a store of value, a safe haven, or it could be legalized and recognized as a global means of payment like the original purpose for which Satoshi created it.
Not only that traders and investors are getting smarter. They have seen different situations in the entire history of the Bitcoin market and is not easily affected or hyped anymore. With the institutions getting involved, the market become stable and trading in a more conservative manner. Also the algorithm and settings of trading bots are getting advance making much more intelligent decision in stop losses situation.
The effect of anything always subject to the law of diminishing returns. Just like the buy the rumor and sell the news stuff, the more frequent it is used the lesser the impact will be.
