According to Cointelegraph: Reportedly, Bitcoin's volatility over one year has shown a downturn, falling below dominant tech entities such as Tesla, Meta (formerly Facebook), and Nvidia. This signals Bitcoin's maturity towards a stable asset class.
As of May 11, Bitcoin's 1-year realized volatility—signifying the deviation of returns from the mean return of a market—rested at around 44.88%. In comparison, the annualized realized volatility of behemoth stocks such as Tesla, Meta, and Nvidia exceeded 50%. Bitcoin displays relatively lower volatility than 33 of approximately 500 firms in the S&P 500 index, as pointed out in Fidelity Investment's latest report.
In the early years of Bitcoin, its annualized volatility was over 200% - common to newer asset classes with substantial capital inflows. As depicted in Bitcoin's long-term volatility chart, there has been a steady stabilization of volatility over time. This trend makes Bitcoin's recent volatility patterns mirror gold's trajectory in its early trading years.
Recognition of these parallels suggests that Bitcoin, similar to gold, is transitioning towards a more stabilized asset class as its integration into the financial landscape progresses.
Interestingly, reduced annual Bitcoin realized volatility has typically been a precursor to substantial price uplifts. Therefore, as Bitcoin's price stabilizes, it enhances the accumulation sentiment among both existing and new BTC investors. Since December 2023, Bitcoin's 1-year volatility sat around 43%, followed by a price rise of about 75%.
This dip in volatility and rise in price, alongside the emergent demand for spot Bitcoin ETFs in the United States, point to "a growing belief that Bitcoin is maturing," says Fidelity researcher Zack Wainwright. Such sentiments enhance the expectations for the BTC price to ascend towards the $100,000 - $150,000 range due to predicted ETF inflows.
