Bitcoin’s volatility below Nvidia in 2025 as investor base grew: Bitwise
Summary
Bitwise forecasts that Bitcoin's volatility will remain lower than Nvidia's by 2026, attributing this trend to increased institutional adoption and the influence of ETFs on the cryptocurrency's maturation. This insight highlights the evolving landscape of digital assets.
Key Insights
How can Bitcoin be less volatile than a single tech stock like Nvidia when cryptocurrencies are usually seen as more volatile?
Bitcoin’s measured volatility can fall below that of a single equity such as Nvidia if the price swings (standard deviation of returns) of Bitcoin over the measured period are smaller than Nvidia’s; Bitwise reports that across 2025 Bitcoin’s realized volatility was lower than Nvidia’s and attributes this to broadening institutional adoption, greater ETF participation, and reduced leverage in crypto markets, all of which can dampen BTC’s price swings compared with a high-beta, AI-driven stock like Nvidia[1][3].
Why would ETFs and institutional adoption reduce Bitcoin’s volatility over time?
ETFs and institutional adoption tend to bring larger, more diversified, and longer-term capital that increases market depth and liquidity, reduces reliance on retail leverage, and encourages more stable allocation practices; Bitwise argues these structural changes (plus clearer regulation) make Bitcoin’s price behavior more like a mature asset and therefore can lower realized volatility versus periods dominated by retail speculation and high leverage[1][4].