Bitcoin Likely to Outperform as Volatility Falls

I think Bitcoin is positioned to deliver stronger risk-adjusted returns as realized volatility falls. The decline in volatility reduces tail risk and can lift Sharpe ratios for directional crypto exposures and systematic strategies.

I expect strategies that captured trend and carry in crypto to benefit first, with Bitcoin leading due to its market depth and liquidity. I would watch correlation with equities and macro drivers, which can quickly change the risk profile.

My approach would be to increase exposure gradually, use position sizing to control drawdowns, and keep stop-loss or hedging rules in place if volatility or correlations reaccelerate.