Bitcoin's volatility is slowing down, showing a trend towards "blue chipization", with speculative funds shifting towards Ethereum.

Bitcoin assets are now showing signs of maturity, with the extreme volatility gradually calming down, forcing speculative traders to look for new investment areas. The performance of the world's largest cryptocurrency is increasingly resembling blue-chip stocks, attracting long-term investors from Wall Street. Its annualized volatility has decreased from nearly 200% ten years ago to a currently almost unimaginable 38%. According to ByteTree Asset Management, its volatility now is comparable to companies like Starbucks Corporation (SBUX.US) or Goldman Sachs Group, Inc. (GS.US). Investors who were chasing price fluctuations are now turning to Ethereum, the second largest cryptocurrency. In several trading days this month, Ethereum ETF trading volume has equaled or even surpassed Bitcoin's trading volume, all of this happening after a wave of corporate purchases. BlackRock, Inc.'s Ethereum ETF was launched in April, but its existing options holdings now amount to $5.5 billion, approximately 40% of the total Ethereum holdings on the crypto derivative platform Deribit. This positioning reflects a common investment pattern. Bitcoin is increasingly seen as a long-term asset to hold. Ethereum's acceptance among institutional investors is a bit delayed, but it has become the preferred asset for traders looking for greater volatility. Arca's Chief Investment Officer Jeff Dorman stated that this is not a comprehensive rebound market, as most recent trading activity has been focused on Bitcoin and Ethereum. However, the motivations of different parties are somewhat different. Vivek Raman, founder of research company Etherealize, stated: "For many traders, Bitcoin trading has completed its cycle. Ethereum, on the other hand, still appears to be underheld, with greater volatility and more responsive behavior." On Friday, the exchange rates of these two cryptocurrencies did not change much. At this point, financial market traders are closely watching Federal Reserve Chairman Powell's important speech at the Jackson Hole Symposium. By August, investors had poured $2.5 billion into the Ethereum ETF, while Bitcoin-related products saw a net outflow of $1.3 billion. Some traders are now preparing for a market reversal. Arthur Azizov of B2 Venture Partners predicts that Ethereum will consolidate between $3,900 to $4,400, but he warns that if leveraged bets begin to unwind, Ethereum could fall below $3,000. Last Friday, Ethereum's trading price was $4,280. Bradley Duke, head of Bitwise Europe, said: "The Ethereum market is gradually showing signs of risk aversion. While the possibility of short covering cannot be completely ruled out, many funds are currently preparing for a market correction." In past cycles, the rise of Bitcoin and Ethereum often led to a strong market overall. This time, however, the performance of other digital tokens has been relatively calm. Currently, Bitcoin is a stable support force, while Ethereum is in a highly volatile area. This tense situation reflects the market's transition period: Bitcoin is gradually becoming a mainstream asset, with reduced volatility; Ethereum has become a speculative place for traders seeking risk. Whether this difference will trigger a comprehensive revival of other cryptocurrencies or marginalize smaller tokens, is currently unknown.