Bitcoin volatility drops to a five-year low, price stability surpasses NVIDIA

Despite Bitcoin quickly pulling back after continuously setting historical highs, this leading global cryptocurrency is gradually demonstrating characteristics of a mature asset class, with its declining volatility becoming a key indicator.

For a long time, Bitcoin has been seen as a high-risk asset due to its price fluctuations, leading many investors to hesitate. However, the current reality may change your perspective—Bitcoin's volatility has now dipped below that of some blue-chip tech stocks.

According to ecoinometrics, Bitcoin's current 30-day realized volatility has dropped to its lowest level in nearly five years. Even after experiencing several major rallies and pullbacks over the past five years, this trend remains stable: "This is exactly how a mature asset should perform."

Since 2022, Bitcoin's volatility has often been lower than that of some Wall Street giants, such as NVIDIA and other large-cap stocks. During the severe fluctuations in the tech sector from 2023 to 2024, Bitcoin, known for its "high volatility," surprisingly showed greater price predictability than NVIDIA.

Even in the current Bitcoin bull market, its price fluctuations are noticeably more moderate compared to previous cycles. Macro analyst Lyn Alden recently told CryptoSlate that she believes Bitcoin's market cycle is changing.

She pointed out that this cycle may last "longer and be smoother" than before, entering a consolidation phase after a strong rally, "rather than crashing after hitting a high point." The declining volatility is just one of the signs that Bitcoin is maturing. The launch of a U.S. Bitcoin spot ETF in early 2024 is a milestone event that opens the door for mainstream investors to this asset.

Pension funds, endowments, and insurance companies are also beginning to include Bitcoin in their alternative asset strategies. The participation of these mature investors increases rational trading and weakens the impact of short-term speculative funds on price.

Whether ordinary investors or institutions, the decline in Bitcoin's volatility means reduced risk and a smoother investment experience.

This trend indicates that Bitcoin is shedding its earlier frenzied speculative swings, gradually establishing its status as a legitimate member of society and an important component of a diversified investment portfolio. It’s time to acknowledge that our "child" has grown up.