Bitcoin’s Price Climbs, Volume Dips as Institutional Adoption Grows

Despite Bitcoin hitting new highs, trading volume has declined according to expert analysis. DWF Labs managing partner Andrei Grachev attributes this shift to the cryptocurrency transitioning into a more traditional financial asset category. As institutional investors increasingly incorporate Bitcoin into their portfolios, Grachev predicts a significant price increase over time. However, he anticipates that trading volume will decline as institutions adopt a hold-and-wait strategy for high-frequency transactions and leverage off-chain solutions like Lightning Network and Layer-2 scaling to minimize visibility on the blockchain. This trend suggests a rise in value with lower transaction activity. While this shift may pose challenges for miner revenue, Grachev believes it doesn’t represent a risk to the network’s overall health, predicting long-term growth due to fewer, more significant transactions. He argues that market valuation, rather than trading volume, will increasingly define Bitcoin’s future success.