NewsBTC

16 January 2025

11 1

Bitcoin’s Volatility Lower Than Major Tech Stocks Like PayPal and Nvidia

The volatility of Bitcoin has decreased, making it less volatile than major tech stocks like PayPal, Nvidia, and AMD. This marks a shift from Bitcoin as a speculative asset to a more stable investment.

Key Points

• Bitcoin's volatility over the past three months was 34%, compared to 37% for PayPal, 43.3% for Nvidia, and 40% for AMD.
• This stability is attributed to increased institutional engagement and a maturing market.
• The Bitcoin Volatility Index (BVOL) indicates reduced price fluctuations, nearing its lowest levels in months.
• Analysts suggest that greater adoption by institutional players stabilizes Bitcoin through larger trading volumes.
• Lower volatility may attract new investors, particularly institutions previously deterred by Bitcoin’s unpredictability.
• Increased stability positions Bitcoin as a better store of value, similar to traditional assets like gold.

The trend towards reduced volatility could enhance Bitcoin’s trustworthiness among investors and financial institutions, indicating a potential transition to a reliable long-term investment option.