A comprehensive volatility report released by Bybit in collaboration with Block Scholes revealed a significant decline in Bitcoin volatility during June 2025, attributed to rising institutional investments through ETFs.
Bitcoin and Volatility Decline
According to the report, Bitcoin's implied volatility dropped to 28%, the lowest since October 2023 and well below the critical 30% threshold. This decline continues a trend that began in 2020, signifying the asset's growing maturity as it gains mainstream acceptance.
Impact of ETFs on Price Stability
The report highlights that the launch of Bitcoin ETFs in January 2024 and subsequent inflows have significantly stabilized BTC prices. Institutional investors provide consistent demand, helping to soften sell-offs and create a new price floor. The year 2025 has shown a shift towards smaller and more positive daily price movements.
Differences in Volatility Between BTC and ETH
While Bitcoin remains stable, Ethereum (ETH) continues to exhibit high volatility. Since the launch of its ETF in July 2024, the ETH/BTC realized volatility ratio has steadily increased, reaching levels between 1.68 and 2.34 in June 2025, indicating a significant divergence in stability between the two assets.
The decline in Bitcoin volatility and the impact of institutional investments through ETFs create a more stable trading environment. However, Ethereum's high volatility points to distinct behavior that may have implications for investors.
