CryptoQuant CEO has predicted that Bitcoin (BTC) will transform into a stable currency by 2030 following a 378% increase in its mining difficulty over the past three years. Ki Young Ju believes that institutional investment in large-scale mining operations will push the value of the token higher while there will also be an influx of new miners.

Ensuring Bitcoin Stability through Institutional Influence

According to Ju’s prediction, a rise in mining difficulty is a sign that Bitcoin will stabilize by 2030. He added that the infamous volatility of the cryptocurrency market will be lessened as institutional investors’ influence increases.

In the past, Bitcoin and other digital assets have been known for their erratic price fluctuations, which have helped to create a perception about them as speculative investments rather than a reliable investment portfolio. However, the growing influence of institutional investors has made mining Bitcoin more challenging, resulting in a more centralized allocation of processing power.

While skeptics contend that centralization could compromise this network’s decentralized structure, Ju noted that this change might stabilize the system. In addition to increasing market capital and resources, institutional players also create a more regulated atmosphere, which could lessen sharp price swings.

Ju also forecasted that within the next three years, big financial technology firms would promote the broad use of stablecoins. If his prediction holds, the wider adoption of digital currencies may facilitate BTC’s price stability.

Additionally, Ju is confident that conversations about Bitcoin’s use as a traditional currency will gain more traction by 2028 after the next halving.

Scalability Challenges

Meanwhile, there have been challenges in making this coin’s network useful for regular transactions. A solution to these constraints is the establishment of Layer-2 (L2) solutions, such as the Lightning Network, to facilitate quicker and less expensive transactions.

However, these solutions are still not widely used. Hence, Ju argued that institutional support is essential for the uptake of Bitcoin L2 solutions.

These organizations can offer the infrastructure and funding required to increase L2 technology’s accessibility to a wider range of users. Nevertheless, there is still a lot of competition, especially from options like Wrapped Bitcoin (wBTC).

WBTC is a popular option for investors looking for more seamless transactions. It enables Bitcoin to be integrated into other blockchain ecosystems without the technical complications that frequently accompany L2 infrastructure.

Therefore, widespread adoption of these L2 solutions is still uncertain unless there’s strong institutional support.

$25 Million Bitcoin Options Trade Signals Optimism

Political unpredictability is fueling increased activity in the cryptocurrency market as the US presidential election approaches. Substantial trading activity, such as a record-breaking $25 million Bitcoin options trade on the decentralized derivatives exchange Derive, is one of the notable activities.

Also, an institutional investor’s large transaction indicates a strong belief in a possible BTC price spike following the announcement of the election results. The trade is especially notable because of its complex, multi-legged Bitcoin options strategy.

It entailed selling 200 call contracts at $80,000 and buying 100 call option contracts with a strike price of $70,000. It also wrote one hundred contracts for a $50,000 put option, all of which were scheduled to expire on November 29.

In the event that the price of Bitcoin hits $80,000 by the end of November, this strategy will maximize profits. The organization used eBTC, or restaked BTC via EtherFi, as collateral to secure the transaction.

Notably, this approach offers a twofold benefit: it facilitates the trade and offers the chance to generate passive returns on the Bitcoin staked.

Institutional Interest and Market Response

Without accounting for any possible gains from the staked eBTC, the institution could profit $1.02 million from this single trade if the BTC reaches the $80,000 target before the options expire. Given the current political climate, this noteworthy activity demonstrates the growing confidence of institutional investors.

 Many of them continue to use Bitcoin derivatives as a strategic investment. The growing capital flow into BTC-backed investment products further supports the trend of institutional involvement in the cryptocurrency market.

Furthermore, the change has been significantly influenced by the recent introduction of spot Bitcoin Exchange-Traded Funds (ETFs). According to data from SoSoValue, these ETFs have received $21.34 billion in inflows since their January launch, including a significant net inflow of $192 million on Wednesday alone.

Despite the short-term market volatility, these numbers demonstrate institutional investors’ ongoing faith in Bitcoin’s long-term prospects. Furthermore, the impact of the upcoming election is already influencing Bitcoin’s market behavior.

The price of the asset fluctuated significantly on Thursday, falling to $65,500 before rising to about $67,000.