A recent report from Ark Invest highlights an historically low level of Bitcoin volatility. This article examines the implications of this decline.
Bitcoin Volatility: New Data
According to Ark Invest's report, Bitcoin's volatility remained below 50% during 2024 and early 2025. The graph indicates a gradual decline in volatility, which may signal a change in the asset's nature.
Benefits for Investors
Despite the decrease in volatility, Bitcoin's return for 2024 reached 122.2%, surpassing the returns of gold, bonds, and equities. The report indicates that low volatility might negatively impact short-term traders, but it could signify more stable growth for long-term investors. Prominent Bitcoin investor Michael Saylor emphasizes: "Volatility is a gift to the faithful. It scares away tourists."
Bitcoin's Maturity and Future
The decrease in volatility is seen as a sign of Bitcoin's maturation. Stable prices make Bitcoin more suitable for daily transactions. A steady price may lead to broader adoption of Bitcoin in business. According to Scott Melker, Bitcoin remains an uncorrelated asset that demonstrates stability even amid global instability.
Bitcoin's historically low volatility may present new opportunities for its use as a stable asset, potentially leading to wider acceptance and increased liquidity.
