Despite increased institutional adoption and market maturity, Bitcoin remains vulnerable to parabolic rallies and bubbles driven by human psychology and sentiment, which can lead to larger and faster price surges than usual.

The article emphasizes that dismissing the possibility of a parabolic top underestimates Bitcoin's market structure, suggesting that the current rally could become more dramatic despite institutional influence.

Market sentiment, including fear and greed, continues to influence Bitcoin's price, with institutional traders also prone to herd behavior, especially during periods of low volatility and increased leverage.

Net ETF outflows often coincide with market bottoms, indicating that even 'smart money' tends to follow trend-following behaviors rather than perfect cycle timing.

Bitcoin has seen multiple rapid rallies, with 60-100% increases within 100 days since the 2022 bottom, indicating the potential for a similar or even larger parabolic move before the end of the year.

Significant capital flows into gold, which has increased its market cap by over $10 trillion since January 2024, could serve as a template for Bitcoin, where a relatively small inflow might boost its market cap by $2 trillion, pushing prices above $220,000.

Historical market cycles show that bubbles and parabolic runs are recurring, often fueled by human behavior, with institutional investors capable of both accelerating and amplifying these cycles.