Smart money analysis comments from this Bloomberg article:
e general idea of price volatility as a value dates at least as far back as Fischer Black, one of the founders of options price theory. 1
As crypto prices become more stable, the volatility benefits from crypto diminish. After a while, when investors see lower price volatility, they will be less interested in crypto. They will sell, creating downward pressure on prices.
But the story does not end there. Then the volatility game starts up again. As the price is falling, investors will wonder: Exactly how much has crypto volatility fallen? How much do other investors mind? Exactly what kind of process is driving these developments?
The bottom line: Even risk-averse investors can seek out some volatile price movements. This means that the future of crypto assets will be more persistent than many people expect, and will not require those assets to become more stable or fully satisfy a long list of practical uses. That said, when greater stability does eventually come, crypto will lose some of its luster — and future prices may disappoint some of crypto’s most ardent advocates.