The volatility of Bitcoin has experienced a substantial decline since the launch of spot Bitcoin exchange-traded funds (ETFs), marking a significant shift towards market stability.
Bitcoin’s 90-day rolling volatility metric has now fallen below 40, indicating a notable reduction in previously common large price swings. This decreased volatility is attributed to the ETFs significantly improving market liquidity and broadening accessibility.
The enhanced stability makes Bitcoin a potentially more attractive asset class for risk-averse investors and traditional financial institutions. Analysis indicates Bitcoin’s core volatility post-ETF adoption is now less than double that of gold, signaling a maturing risk profile for the pioneering cryptocurrency.
Market observers view this shift in volatility metrics as evidence of a maturing crypto sector. The ETFs are credited with contributing to more stable price movements, fostering increased investor confidence in the asset’s long-term prospects within regulated financial markets.