According to foreign media reports, Trace Mayer, a long-term Bitcoin investor and creator of the Mayer Multiple indicator, believes that the significant decline in Bitcoin's volatility in recent years does not mean that the asset is becoming less attractive. On the contrary, it shows that its market size, liquidity, and institutional participation are increasing.

In an interview with CoinDesk, he stated that Bitcoin volatility has decreased significantly from its earlier highs. With more institutions, businesses, and professional traders entering the market, prices are no longer as easily driven up or down by small amounts of capital as they used to be.

Options trading suppresses short-term volatility

Mayer believes that one of the key reasons for the narrowing volatility is the expansion of the options market, particularly the increased practice of institutions selling covered call options. While these transactions allow for the collection of premiums upfront, they also create selling pressure for market makers when hedging risks.

When Bitcoin prices rise, counterparties often need to sell spot or related positions to control their exposure. This hedging behavior reduces the magnitude of short-term surges, making price fluctuations more moderate.

The indicator reading is close to the long-term mean.

Mayer also mentioned the Mayer Multiple, which he proposed years ago, uses the current Bitcoin price divided by the 200-day moving average to observe the price's position relative to its long-term trend. According to him, Bitcoin's current reading is approximately 0.94, slightly below the long-term trend line.

He stated that as historical data accumulates, the fluctuation range of this indicator is narrowing. Compared to earlier years, the deviation of Bitcoin's price from its long-term average is no longer as extreme, which he also sees as a sign of asset maturity.

Easier for businesses and institutions to configure

Mayer believes that lower volatility will make Bitcoin more accessible to corporate, family office, and institutional investment committees. For these funds, a smoother price path is often more important than high elasticity.

He also mentioned that the Bitcoin-related market has expanded from early single spot trading to a broader asset system including regulated derivatives, leveraged ETFs, and listed company holdings. As the number of participants increases, market depth is also increasing in tandem.

However, Mayer also mentioned long-term risks, including whether miner incentives will be sufficient to maintain network security, and the potential challenges that quantum computing may bring in the future. Even so, he remains optimistic about Bitcoin's long-term scarcity relative to gold, arguing that its total supply is fixed at 21 million coins.