Matrixport Research: Bitcoin volatility drops to 41%, institutions dominate the market

Matrixport’s latest report points out that although Bitcoin has rebounded by more than 300% since the end of 2022, retail participation remains sluggish, the market is dominated by institutional investors, and volatility has dropped to 41%, below the 5-year average (60%). As retail participation decreases, Bitcoin is increasingly dominated by institutional investors, resulting in lower volatility. This remarkable shift from retail to institutions was further evidenced by the unwinding of retail positions in South Korea as Bitcoin fell below $60,000. Meanwhile, ETFs continue to see steady inflows. The report also shows that most of the decline over the past 30 days occurred during Asian trading hours, accounting for -13% of the overall -15% decline, mainly driven by retail trading activity in South Korea. Google Trends data shows that Bitcoin search trends have dropped from 100% in 2017 to 41% in 2024, indicating limited retail interest but increased awareness. The trading volume of Korean exchanges is closely related to the annualized funding rate of Bitcoin. Korean retail investors play an important role in the altcoin market, bringing a large number of leverage opportunities.