According to market analyst James Van Straten, Bitcoin's market capitalization could reach at least $10 trillion, driven by derivatives products, such as options contracts. These instruments provide investors with the right, but not the obligation, to buy or sell an asset at a predetermined price.

Van Straten suggests that options and other derivatives attract institutional investors and buffer markets from the high volatility typical of digital assets. He cites the open interest for Bitcoin futures on the Chicago Mercantile Exchange (CME), the world's largest derivatives marketplace, as evidence of this shift. He noted that CME options open interest is at an all-time high, partly driven by systematic volatility selling strategies like covered calls, which points to a more mature market structure with deeper derivatives liquidity around Bitcoin.

However, Van Straten also notes that reduced volatility works both ways, and the significant drawdowns common to crypto markets will also dampen the meteoric gains traders have become accustomed to.

The effects of financial derivatives products and investment vehicles on the Bitcoin market cycle and the broader crypto market remain a topic of debate among market analysts. Some argue that all signs point to market maturation, while others say that investor psychology is the true undercurrent that moves markets. Seamus Rocca, CEO of Xapo Bank, told Cointelegraph that Bitcoin's four-year market cycle isn't dead, and markets will continue to be influenced by news cycles, crowd sentiment, and investor psychology. Rocca stated that he wasn't sure if he agreed with the sentiment that institutions are here and, therefore, the cyclical nature of Bitcoin is dead.