I am confused about what the situation will be like after the crypto winter arrives. Will investing in Bitcoin be in a state of long-term growth as a long-term investment or is it hot money?
I think that investors will behave as before, regardless of how they invested in BTC. This would mean that at some point there will be a large outflow of BTC from ETFs, because all these investors invest only for profit and when it becomes clear that the bull run is about to end or when a correction begins, it is logical that this will be a sign for them to exit.
Even in the last few days, there has been a stagnation in inflows, while on the other hand, we have an increase in BTC outflows from funds - now the only question is whether the reason is that investors are afraid of a possible war in the Middle East, or the same thing would have happened regardless to the current development of the situation.
I believe that Bitcoin would gain some stability only if by some miracle central banks started investing in it, but as long as the average investor sees it as an opportunity for relatively easy and quick earnings, we should not hope that the volatility will disappear.