"Bitcoin's historical volatility dropped to 42% in 2025, roughly half of what it recorded in 2021, marking a significant shift as the cryptocurrency matures into a widely traded financial asset."
"Despite the decline in volatility, bitcoin remains prone to sharp drawdowns, falling as much as 32% in 2025, with losses extending into early 2026."
"Over a longer three-year window, BTC recorded a peak-to-trough decline of 50%, underscoring that large swings—while less frequent—have not disappeared."
"Bitcoin's long-term volatility profile remains elevated relative to traditional assets, as evidenced by a 77% decline during the 2022 market downturn."
Bitcoin's price volatility has sharply declined, with historical volatility dropping to 42% in 2025, less than major tech stocks like Tesla and Nvidia. Despite this decrease, bitcoin still experiences significant drawdowns, including a 32% drop in 2025 and a 50% decline over three years. While the frequency of large swings has reduced, they have not disappeared. The long-term volatility of bitcoin remains high compared to traditional assets, as evidenced by a 77% decline during the 2022 market downturn.
Read at Bitcoin Magazine
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