More liquidity means less volatility. There was a lot of money coming into crypto following the approval of ETFs and trust me, the volatility you see these days is nothing compared to the volatility we would see those days (My primary focus is on BTC and ETH since they are the top coins)
Back then a 20% movement by BTC or ETH seemed normal. Today even just a 10% movement looks catastrophic and tends to trigger a lot of liquidations.
Yeah, couldn't agree more. The price change threshold has also changed my behavior in crypto. Nowadays, when I see a 1 to 3% price change, it's just normal for me. But when I see a 4 to 6% price change, I start looking for news and checking the entire crypto market to find out what's happening. If I see anything beyond that, I start thinking it's probably because of a war, force majeure, or some other major event.
Also, many institutions project Bitcoin's CAGR to be around 10 to 30% until 2050. That also indirectly suggests that we shouldn't expect the same level of extreme volatility as in the early days.
