Recent studies show that Bitcoin's volatility has dropped to levels not seen in nearly five years, which may indicate its maturation as an asset.
Historical Data on Bitcoin's Volatility
According to data from Ecoinometrics, Bitcoin's 30-day volatility is at a five-year low. This is observed alongside a significant price increase, with Bitcoin now exhibiting much calmer price movements than in previous cycles.
Comparison with Traditional Assets
Recent reports indicate that Bitcoin has become less volatile than stocks of major tech companies like Nvidia and PayPal. Fidelity's data confirms that Bitcoin's realized volatility is now lower than Netflix's.
What Drives Bitcoin's Stability?
Factors contributing to the calm in Bitcoin's price action include the growing acceptance of spot Bitcoin ETFs and inflows from institutional investors. Along with additional investments from corporate treasuries and pension funds, reduced volatility is a result of diminishing retail trader influence.
Bitcoin demonstrates stable behavior, making it more suitable for long-term investments. This creates conditions for further acceptance of Bitcoin as a stable asset and potential growth.
