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Bitcoin Volatility Falls as Speculation Moves Into DeFi

Schwab's Jim Ferraioli says Bitcoin's maturing profile is pushing higher-risk activity toward DeFi, perpetual futures and prediction markets.

Bitcoin volatility is around 40 in the current cycle, below previous cycles, according to Schwab Head of Crypto Research Jim Ferraioli. He said in an October 6 Coinage interview that the market is maturing as Bitcoin experiences fewer extreme rallies and deep drawdowns.

That shift is also changing where speculative capital is deployed. Ferraioli said higher-risk demand is moving into DeFi, perpetual futures and prediction markets as Bitcoin becomes a larger and less volatile asset.

The pattern points to a broader division within crypto markets: Bitcoin is taking on a more established role, while traders seeking greater risk are turning to products and ecosystems with more pronounced price and leverage exposure.

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$BTC

Frequently asked questions

  1. What is Bitcoin's volatility in the current cycle?

    Bitcoin's volatility is around 40 in the current cycle, according to Schwab Head of Crypto Research Jim Ferraioli.

  2. Why is speculative capital moving away from Bitcoin?

    Ferraioli said Bitcoin is becoming larger and experiencing fewer extreme rallies and deep drawdowns, making other crypto products more attractive to higher-risk traders.

  3. Which crypto areas are attracting more speculative activity?

    The activity is shifting toward DeFi, perpetual futures and prediction markets.

  4. What does lower Bitcoin volatility indicate about the market?

    It indicates that Bitcoin's market is maturing and taking on a more established role within crypto markets.

  5. How is crypto market activity becoming more divided?

    Bitcoin is developing a more established core role, while traders seeking greater risk are turning to products and ecosystems with higher volatility and leverage exposure.

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Aggregated from WuBlockchain · Verified · Last refreshed 1h ago
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