Bitcoin Becomes Less Volatile Than Major Tech Giants
The volatility of Bitcoin It’s currently lower than some of the biggest tech stocks like AMD, Nvidia and PayPal. This shift represents an important turning point in the evolution of cryptocurrencies from speculative assets to more reliable investment options.
Data from IntoTheBlock suggests that this development is the result of institutions participating in an increasingly mature market.
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Bitcoin’s relationship with tech stocks
An interesting development is that the price volatility Bitcoin’s fluctuations are more stable than those of the stocks of well-known tech giants.
cryptocurrency In fact, it has long been known for its wild price swings, which often scare off cautious investors.
Bitcoin prices have been less volatile over the past three months than the share prices of tech giants like PayPal, Nvidia and AMD, according to statistics published by IntoTheBlock in an X post on Wednesday, January 15.
In particular, Bitcoin has fluctuated 34% during this period, while PayPal, Nvidia and AMD have fluctuated 37%, 43.30% and nearly 40% respectively.
Bitcoin is currently less volatile than many major tech stocks pic.twitter.com/chuE2x1h4T
— IntoTheBlock (@intotheblock) January 15, 2025
Indicators show stability
What does “volatility” mean in the cryptocurrency market? It refers to the speed at which cryptocurrency prices change. Huge price changes happen very quickly, which shows the unpredictability of the market.
Factors such as news, changes in supply and demand, or investor sentiment can cause this to happen. High volatility means prices vary widely, while low volatility means prices are more stable.
Various indicators, including the Bitcoin Volatility Index (BVOL), point to a decrease in volatility. It monitors Bitcoin price fluctuations over time, and based on its current performance, Bitcoin prices are approaching their lowest levels in months.
Analysts including Ark Invest explained that this is related to the increased adoption of clearing and larger trading volumes by institutional players such as asset managers and large funds, which use larger trading volumes to stabilize the situation.
What this means for investors
If volatility decreases, a new generation of investors may emerge, especially institutions that have long shunned Bitcoin due to its unpredictability.
Bitcoin is the world’s most popular cryptocurrency and its greater stability will also make it a better store of value than traditional assets such as gold. This could help improve its position in a diversified portfolio.
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2025 and Beyond: Bitcoin’s Journey to Maturity
Bitcoin has become more stable, which may help it gain more trust from investors and financial institutions. The decrease in its volatility suggests it is transitioning from a risky asset to a more reliable one. This could make crypto assets a better choice for long-term investment.
People are paying close attention to how it develops in the future and how it integrates into the global financial system as a stable and trustworthy option.
Featured image from Brookings Institution, chart from TradingView
