A $100,000 target for Bitcoin in 2024 remains a plausible scenario, but the ascent may unfold at a measured pace, deviating from the rapid surges enthusiasts might anticipate.

The month of February proved to be a notable period for Bitcoin (BTC), which surged to $52,119, surpassing the significant $50,000 milestone. Even the most reserved investors couldn't conceal their enthusiasm during this bullish run.

While the optimistic sentiment soared and comparisons to the 2021 bull run abounded, it's crucial to approach this excitement with caution. Upon closer inspection, the current rally seems primarily driven by psychological factors. A more comprehensive view suggests that the prevailing market dynamics hint at a continuation of the subdued price actions that preceded it, signaling that 2024 will differ significantly from the exuberance witnessed in 2021.

In the crypto realm, where round numbers hold a particular allure, two significant figures surfaced on February 9. Firstly, Bitcoin spot ETFs, touted as the gateway for traditional finance institutional investors, amassed $10 billion in assets under management within a month of trading. Secondly, the S&P 500 index, encompassing "big tech and finance," achieved a historic milestone by reaching 5,000 index points. However, beneath these apparent successes lies a different narrative.

Before the recent spike, Bitcoin was trading within a relatively narrow range of 1-2%. A macro perspective might attribute this cautious market behavior to uncertainties surrounding the Securities and Exchange Commission's stance on BTC spot ETF options, the classification of Ethereum as a security or commodity (impacting the approval of ETH ETFs), and the Federal Reserve's hesitancy to reduce interest rates.

Yet, this macro viewpoint, while not entirely inaccurate, is somewhat shortsighted. A deeper examination of Bitcoin's realized volatility over the years suggests that the market's narrow ranges and prudence are not mere reflections of the current environment but indicative of a gradual shift toward stability. This contrasts sharply with the tumultuous fluctuations of the previous bull cycle, signaling a sustained trend.

Realized volatility, a statistical measure of an asset's price variation from its average over a given period, serves to gauge associated risk. For Bitcoin and Ethereum, this measure has been on a declining trend. In 2021, BTC's realized volatility consistently surpassed 100%, peaking at nearly 140%, but over the past year, it has typically remained below 60%. Ethereum exhibited similar patterns at higher levels, reaching almost 300% in May 2021, yet consistently staying under the 60% mark in the last 12 months.

While monthly deviations for both currencies generally ranged between 30% and 50%, occasionally dipping into the twenties, there is still a considerable journey before Bitcoin and Ethereum can be deemed moderately volatile assets comparable to established stocks like Apple.

Despite the persistence of psychologically significant round numbers and prevailing macro concerns causing intermittent price reversals, abrupt spikes are likely to be short-lived. This doesn't negate the possibility of reaching the $100,000 and $10,000 milestones for Bitcoin and Ethereum, respectively, in 2024. However, the climb to new highs is anticipated to be a gradual and steady process as volatility gradually yields to stability.

This perspective seeks not to diminish the recent bullish sentiment but offers a pragmatic outlook on current events. Rather than pursuing the thrill of typical crypto "moon" predictions, it calls for a more measured celebration of a market maturing. As a nearly mature market, the time has come to temper our enthusiasm and redirect that energy toward patience. A new normal marked by consistently subdued price action seems to be on the horizon for Bitcoin and Ethereum.