Bitcoin Volatility Falls As Asset Matures, Charles Schwab Report Finds

A recent report from Charles Schwab indicates that bitcoin is undergoing a significant shift in one of its defining characteristics: extreme volatility. The implications of this change could be seen as either positive or negative, depending on one’s perspective.

According to Schwab’s analysis, bitcoin’s price fluctuations have decreased notably in recent years, with the cryptocurrency now demonstrating less volatility than some of the largest U.S. technology stocks. In 2025, bitcoin’s historical volatility (HV) dropped to 42%, which is approximately half of what it was in 2021. This decrease marks a notable evolution as bitcoin matures into a widely traded financial asset.

Schwab’s data reveals that bitcoin now exhibits behavior that is akin to major equities, and in some cases, even appears more stable. For instance, Tesla and Nvidia, two prominent technology stocks, displayed higher HV readings in 2025 compared to bitcoin. Despite this decrease in volatility, bitcoin is still susceptible to sharp declines. In 2025, the cryptocurrency experienced a 32% drop, with losses extending into early 2026. Over a three-year period, bitcoin recorded a peak-to-trough decline of 50%, indicating that significant swings, while less frequent, still occur.

However, these losses are not exclusive to bitcoin. Tesla and Nvidia also experienced substantial drawdowns during the same timeframe, with Tesla’s decline reaching 54% and Nvidia’s dropping by 37%. This data highlights a broader trend where high-growth technology stocks can exhibit volatility levels that are on par with or even exceed those of bitcoin.

In a recent tweet, Bitcoin Magazine shared Schwab’s observation that bitcoin’s volatility has calmed down as it has become more mainstream and is now traded on major exchanges worldwide.

Despite the decrease in volatility, bitcoin’s long-term volatility profile remains elevated compared to traditional assets. During the 2022 market downturn, bitcoin fell by 77% from its peak, while Tesla and Nvidia experienced declines of 74% and 66%, respectively. Schwab also noted that Tesla’s overall volatility metrics over a five-year period were still higher than those of bitcoin.

When compared to commodities, bitcoin’s relative stability becomes more apparent. Silver futures often exhibit more erratic day-to-day price movements despite smaller overall drawdowns, while gold maintains a steadier performance with lower volatility.

Within the cryptocurrency market, bitcoin’s stability has become more pronounced, particularly in contrast to Ethereum, which continues to trade with higher volatility and deeper drawdowns. Schwab concluded that bitcoin’s evolution reflects its increasing integration into mainstream finance.

An example of this growing acceptance of bitcoin on Wall Street is Morgan Stanley’s spot Bitcoin ETF, MSBT, which is nearing launch after receiving an official NYSE listing notice. If approved, this fund would be the first spot BTC ETF issued by a major U.S. bank, setting it apart from existing products offered by asset managers like BlackRock and Fidelity.

In conclusion, bitcoin’s decreasing volatility marks a significant milestone in its evolution as a financial asset. As it becomes more integrated into mainstream finance, its stability and acceptance are likely to continue to grow.