Bitcoin, the pioneering cryptocurrency, is shedding its reputation for extreme price swings, according to a new report from Charles Schwab.
The firm’s analysis indicates that bitcoin’s volatility has dropped significantly, now exhibiting less fluctuation than some major U.S. tech stocks. This shift marks a pivotal moment as the digital asset matures into a more stable financial instrument.
Declining Volatility: A Sign of Maturity
Charles Schwab’s report highlights that bitcoin’s historical volatility (HV) has plummeted to 42% in 2025, a stark contrast to the 84% recorded in 2021. This reduction in volatility places bitcoin on par with, and sometimes below, the volatility of leading tech stocks like Tesla and Nvidia. Tesla, for instance, had a HV of 63% in 2025, while Nvidia registered 50%.
The report also notes that measures of daily price movements, such as the average true range as a percentage of price, show a similar trend. Bitcoin’s daily price fluctuations are now more in line with those of major equities, indicating a growing stability in the cryptocurrency market.
Volatility in Context
Despite the overall decline, bitcoin remains susceptible to significant drawdowns. In 2025, bitcoin experienced a 32% decline, with losses extending into early 2026. Over a three-year period, the cryptocurrency saw a peak-to-trough decline of 50%. However, these losses are not unique to bitcoin. Tesla experienced a 54% drawdown over the same period, while Nvidia fell by 37%.
The data underscores a broader trend: high-growth technology stocks can exhibit volatility levels on par with, or even exceeding, bitcoin. This suggests that while bitcoin’s volatility has decreased, it still operates in a high-risk, high-reward environment.
Long-Term Volatility: Still High
Zooming out further, bitcoin’s long-term volatility remains elevated compared to traditional assets. During the 2022 market downturn, bitcoin fell 77% from its peak, a significant drop that outpaced declines of 74% for Tesla and 66% for Nvidia. However, Schwab notes that Tesla’s overall volatility metrics across the five-year period still outpaced bitcoin’s.
When compared to commodities, the report shows that silver futures often exhibited more erratic day-to-day price movements despite smaller overall drawdowns. Gold, by contrast, maintained relatively steady gains with lower volatility, further highlighting bitcoin’s unique position in the financial landscape.
Bitcoin’s Relative Stability in the Crypto Market
Within the broader cryptocurrency market, bitcoin’s relative stability has become more pronounced. Ethereum, the second-largest cryptocurrency, continues to trade with higher volatility and deeper drawdowns. The gap between the two assets has widened since 2021, reinforcing bitcoin’s status as a more stable digital asset.
Charles Schwab’s report concludes that bitcoin’s evolution reflects its growing integration into mainstream finance. A clear example of this is the potential launch of the Morgan Stanley spot Bitcoin ETF, which received an official NYSE listing notice. If approved, the fund would become the first spot BTC ETF issued by a major U.S. bank, distinguishing it from existing products offered by asset managers like BlackRock and Fidelity.
Looking Forward
The decline in bitcoin’s volatility is a significant milestone, indicating that the asset is maturing into a more stable and predictable financial instrument. However, the cryptocurrency’s journey to stability is far from over. As it continues to integrate into mainstream finance, bitcoin’s performance will be closely watched by investors, regulators, and the broader financial community. The future may bring further reductions in volatility, but it will also require ongoing adaptation to the dynamic and evolving crypto landscape.
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