In a recent analysis by Bitwise, Bitcoin’s price volatility has notably decreased, now even falling below that of Nvidia shares in 2025. This transformation is attributed to a more mature and diversified investor base that is gaining traction within the cryptocurrency market.
According to Bitwise, the diminishing volatility of Bitcoin signifies a broader trend of “derisking” the asset, largely influenced by the increasing presence of institutional investors. The report outlines that products such as regulated spot exchange-traded funds (ETFs) are reshaping Bitcoin’s trading dynamics. The shift towards institutional adoption has expanded Bitcoin’s investor demographics, transitioning from a predominantly retail-focused audience to include institutional players.
The statistics present a stark difference between Bitcoin and Nvidia for the current year. Bitcoin recorded a relatively restrained price movement, fluctuating only 68% from its April low of approximately $75,000 to its peak of $126,000 in early October. In contrast, Nvidia experienced a more dramatic shift, characterized by a 120% swing, climbing from around $94 to $207.
Despite the greater volatility experienced by Nvidia, its shares have managed to outperform Bitcoin in terms of year-to-date returns. As of now, Nvidia has seen a growth of about 27% since the start of the year, while Bitcoin has faced a decline of around 8%. This decoupling from traditional equities suggests a significant evolution in the behavior of cryptocurrency markets.
Bitwise views this calmer price movement as a sustainable change rather than a fleeting trend. The firm’s analysis indicates that traditional market forces, including speculation driven by leverage and extreme reactions to events like halving cycles, are losing their grip on Bitcoin’s price dynamics. The firm expresses optimism for Bitcoin’s future, forecasting the potential for reaching new all-time highs in 2026 and hinting at a departure from the previously established four-year market cycles.
Additionally, Bitwise anticipates heightened institutional engagement in the cryptocurrency sphere, identifying major financial institutions such as Citigroup, Morgan Stanley, Wells Fargo, and Merrill Lynch as potential new entrants.
In another report by research and brokerage firm K33, findings suggest that the selling pressure from long-term Bitcoin holders may be nearing its end. K33 estimates that approximately 1.6 million BTC, valued at around $138 billion, has been reintroduced into circulation as early investors chose to take profits. The report highlights that this selling trend is not fueled by speculative trading, but rather is a calculated response to market conditions, reflecting a strategic shift into more liquid institutional environments.
The combined insights from both Bitwise and K33 paint a picture of an evolving Bitcoin market landscape, marked by lower volatility, increasing institutional participation, and potential for significant price action in the near future.
