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Bitcoin’s volatility dropped to 42% in 2025, according to a report by Charles Schwab published on Friday. This figure represents a significant decrease compared to 2021, when the asset’s historical volatility was nearly double. This change marks an important milestone in Bitcoin’s maturation as a widely traded financial asset.
Comparison with Tech Stocks
Schwab’s report shows that Bitcoin now exhibits lower volatility than some of the largest U.S. tech stocks. For example, Tesla recorded a volatility of 63% in 2025, while Nvidia showed 50%, both higher than Bitcoin’s 42%. The analysis also indicates that Bitcoin’s daily price movements are becoming more similar to those of stocks, according to measures like the average true range.
Despite this decrease in volatility, Bitcoin remains subject to sudden drops. In 2025, the asset experienced a fall of up to 32%, with losses continuing into early 2026. Over a three-year period, Bitcoin saw a maximum drop of 50%, although stocks like Tesla recorded even larger declines of 54%.
Long-term Volatility and Comparison with Commodities
Broadening the analysis, Bitcoin’s long-term volatility remains high compared to traditional assets. During the market downturn in 2022, Bitcoin fell 77% from its peak, while Tesla dropped 74% and Nvidia 66%. However, over a five-year period, Tesla showed overall higher volatility than Bitcoin.
The report also compares Bitcoin to commodities like silver, which has often shown more erratic daily price movements despite less significant overall declines. Gold, on the other hand, has maintained relatively stable gains with lower volatility.
Integration into Traditional Finance
The relative stability of Bitcoin within crypto markets is becoming more pronounced. Ethereum, for example, continues to trade with higher volatility and deeper declines, widening the gap with Bitcoin since 2021. This development aligns with Bhutan Sells 519 Bitcoin as, highlighting broader trends. Market participants tracking Bhutan Dumps 519 Bitcoin as Sovereign will find additional context here.
Bitcoin’s integration into traditional finance is strengthening, as demonstrated by Morgan Stanley’s Bitcoin ETF, MSBT, which is nearing its launch after receiving an official listing notification on the NYSE. This fund could become the first spot Bitcoin ETF issued by a major American bank.
FAQ
What is Bitcoin’s current volatility according to Charles Schwab?
According to Charles Schwab, Bitcoin’s historical volatility fell to 42% in 2025.
What is the status of Morgan Stanley’s Bitcoin ETF?
Morgan Stanley’s Bitcoin ETF has received an official listing notification on the NYSE, indicating an imminent launch.
Charles Schwab’s report also highlights that the decrease in Bitcoin’s volatility coincides with increased adoption by institutional investors. In 2025, more than 30% of Bitcoin transactions were attributed to these players, according to the firm’s data. This growing participation could explain the asset’s gradual stabilization. This aligns with themes discussed in A Whale Awakens $147 Million After, illustrating the evolving landscape. This echoes themes explored in Bitcoin Whale Awakens 7 Million After, underscoring the shifting landscape.
Another point highlighted is the impact of stricter regulations. Since 2023, several major jurisdictions, such as the European Union, have implemented regulatory frameworks aimed at overseeing cryptocurrency exchanges. According to Schwab, this regulation has helped reduce the extreme speculative behaviors that once fueled Bitcoin’s volatility.
From a technical perspective, trading volumes on major exchange platforms, such as Binance and Coinbase, have shown a consistent upward trend. In 2025, the average daily volume reached $10 billion, illustrating growing liquidity that can also cushion price fluctuations.
Charles Schwab’s report also emphasizes the growing interest of investors in Bitcoin as a diversification tool. In 2025, Bitcoin was integrated into the portfolios of several institutional investment funds, including the renowned hedge fund Bridgewater Associates, led by Ray Dalio. This adoption by major players underscores the increasing recognition of Bitcoin as a distinct asset class.
Moreover, the report mentions that Bitcoin trading volume on Asian exchanges has seen a notable increase. In January 2026, Binance recorded a trading volume 15% higher than the previous year. This Asian dynamic is attributed to increased adoption in countries like Japan and South Korea, where Bitcoin is increasingly used as a means of payment.
Another point of interest raised by Schwab concerns the correlation between Bitcoin and traditional stock indices. In 2025, the correlation between Bitcoin and the S&P 500 reached 0.35, indicating a moderate but growing relationship. This correlation reinforces the idea that Bitcoin is increasingly perceived as an asset integrated into the global financial system.
Finally, the report mentions that Bitcoin’s price fluctuations have been influenced by decisions of the U.S. Federal Reserve. In September 2025, an announcement by the Fed regarding an interest rate hike caused a temporary 5% drop in Bitcoin’s price, illustrating the asset’s sensitivity to monetary policies.
