A new analysis from Charles Schwab suggests that Bitcoin’s notorious price swings are beginning to calm, with volatility now lower than that of several major U.S. tech stocks.
Key Points
- Charles Schwab analysis finds Bitcoin’s volatility fell to 42% in 2025, roughly half of what it was in 2021.
- Schwab notes that major tech stocks, including Tesla (63%) and Nvidia (50%), are now more volatile than Bitcoin.
- Despite improving stability, Bitcoin still faced a 32% drop in 2025, with longer-term peak-to-trough declines of 50% over three years.
- Within crypto, Ethereum remains more volatile, signaling Bitcoin’s relative stabilization compared to other digital assets.
- Schwab highlights growing institutional adoption as a key driver behind calmer price swings.
- The report emphasizes that while volatility is declining, long-term risk remains elevated compared with traditional investments.
Bitcoin Shows Signs of Stabilization
According to the report, Bitcoin’s historical volatility dropped to 42% in 2025, roughly half the levels seen in 2021. This marks a significant shift in how the asset behaves within financial markets.
As volatility declines, Bitcoin is no longer moving as unpredictably as in previous years. Schwab attributes this trend to broader adoption and increased trading activity. With more participants in the market, price movements are becoming more balanced and less extreme.
Now Comparable to Major Tech Stocks
Bitcoin’s improving stability is increasingly placing it alongside major equities. Schwab highlights that in 2025, Tesla recorded volatility of 63%, while Nvidia posted 50%, both exceeding Bitcoin’s 42%.
These comparisons suggest that some high-profile technology stocks are now more volatile than Bitcoin. Daily price movement indicators reinforce this trend, pointing to a gradual shift in Bitcoin’s overall risk profile.
Sharp Declines Still Occur
Despite this progress, Bitcoin remains prone to notable downturns. The report notes that the asset fell as much as 32% in 2025, with weakness continuing into early 2026.
Looking over a longer horizon, Bitcoin experienced a 50% peak-to-trough decline over three years, highlighting that significant fluctuations, though less common, still occur.
Importantly, such movements are not unique to crypto. Tesla recorded a deeper 54% decline, while Nvidia fell 37%, highlighting that sharp corrections are common among growth-focused assets.
Long-Term Risks Remain Elevated
Even with declining volatility, Bitcoin continues to carry higher long-term risk than many traditional investments. During the 2022 market downturn, the asset dropped 77% from its peak.
By comparison, Tesla declined 74% and Nvidia 66% over the same period. However, Schwab notes that over a five-year timeframe, Tesla’s overall volatility still exceeded Bitcoin’s.
This contrast illustrates a changing dynamic: while Bitcoin is becoming more stable, it has yet to match the consistency of more established asset classes.
Positioning Within Broader Markets
To provide further perspective, Schwab also compared Bitcoin to commodities and other digital assets.
Silver futures exhibited more erratic daily price movements, though their overall declines were smaller. Gold, on the other hand, maintained steadier gains and significantly lower volatility throughout the period.
Within the crypto market, divergence is becoming more pronounced. Ethereum continues to show higher volatility and deeper drawdowns, with the gap between Bitcoin and Ethereum widening since 2021. This trend suggests Bitcoin is gradually emerging as the more stable asset in the sector.
Institutional Adoption Gains Momentum
Growing institutional involvement is further reinforcing Bitcoin’s evolving role in financial markets. Schwab points to increasing integration into mainstream finance as a key driver behind its stabilizing behavior.
One notable example is Morgan Stanley, whose proposed spot Bitcoin ETF, MSBT, recently received a listing notice from the NYSE, which is often seen as a step toward launch.
If approved, the fund would become the first spot Bitcoin ETF issued by a major U.S. bank, distinguishing it from existing offerings by BlackRock and Fidelity Investments.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
