Charles Schwab has released a new report that suggests Bitcoin is losing its extreme volatility. It could either be a good thing or a bad one.
The company’s WEBSITE analysisThe price fluctuations of bitcoin have dropped sharply over the past few years. In fact, the currency now exhibits less volatility than the most volatile U.S. stocks. The report found BTC’s historical volatility (HV) dropped to 42% in 2025 — roughly half of what it recorded in 2021 — marking a significant shift as the cryptocurrency matures into a widely traded financial asset.
Schwab’s analysis shows that bTC is now behaving similarly to other major equities. In some cases, it even appears more stable. Tesla’s shares had a HV value of 63% by 2025. Nvidia was at 50%. These two values are higher than BTC. The trend is also evident in measures of daily price movements, like the average true range expressed as a percent of price.
Despite a decline in volatility bitcoin is still susceptible to sudden drops. The report notes bitcoin fell as much as 32% in 2025BTC’s peak-to-trough decline was 50% over a longer three year window, indicating that large swings continue to occur even though they are less frequent. Over a longer three-year window, BTC recorded a peak-to-trough decline of 50%, underscoring that large swings—while less frequent—have not disappeared.
These losses weren’t unique. Tesla suffered a greater loss of 54% during the same time period while Nvidia fell 37%. Data shows a wider trend. High-growth tech stocks are as volatile or more so than bitcoin.
Bitcoin’s volatility over the long term is high
When zooming in, the long-term volatility of bitcoin remains high compared to other assets. The cryptocurrency dropped 77% during the market crash of 2022, while Tesla fell by 74% and Nvidia declined by 66%.
Schwab also noted that BTC’s volatility over the same period was still higher than Tesla.
It also shows how BTC is more erratic than commodities. Silver futures, however, have smaller average price drops but show greater volatility on a daily basis. Gold on the other hand, has maintained its value. relatively steady gains With lower volatility.
In the crypto-markets, Bitcoin’s relative stability is becoming more apparent. Ethereum trades with greater volatility and more severe drawdowns. The gap between Ethereum and other assets is growing.
Schwab argued that BTC’s growth reflects the increasing integration of mainstream finance.
Morgan Stanley’s MSBT spot bitcoin ETF is a clear indication of Wall Street’s growing embrace of Bitcoin. moving closer to launch After receiving an official NYSE list notice, analysts often say this is a sign of an impending debut.
The fund, if approved, would be the first BTC spot ETF offered by a U.S. major bank. This makes it different from other products available through asset managers such as BlackRock and Fidelity.
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Source: bitcoinmagazine.com
