Trace Mayer argues bitcoin's declining volatility reflects institutional maturity, not weakness
By
James Van Straten, AI Boost
23h ago· 5 min readenInsight
92/100
Golden Brown
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Summary
Bitcoin's volatility has dropped significantly from 120 in 2021 to roughly 35, which some critics interpret as the asset losing its edge. However, Trace Mayer, creator of the Mayer Multiple, argues this declining volatility signals institutional maturity and growing economic substance rather than weakness. He suggests that as deeper capital enters the market, volatility naturally compresses, reflecting bitcoin's maturation as an asset class.
Key quotes
· 3 pulledBitcoin's declining volatility isn't a sign of weakness, but rather a direct reflection of its growing economic substance.
The volatility collapse from 120 to roughly 35 represents institutional maturity, not weakness.
Critics view this dampening as a sign that the asset is losing its edge, but they are drawing entirely the wrong conclusion.
The creator of the Mayer Multiple argues bitcoin’s growing economic substance is compressing volatility and attracting deeper capital.
