A recent analysis by Charles Schwab reveals a notable decline in the extreme volatility that has characterized bitcoin, suggesting a potential shift in its status as a financial asset. According to the firm’s report, bitcoin’s historical volatility (HV) has plummeted to 42% in 2025, a striking reduction from its 2021 figures. This decrease leads to observations that bitcoin is now more stable than some of the largest U.S. tech stocks, such as Tesla and Nvidia, which reported HV readings of 63% and 50%, respectively.
The report highlights that, while bitcoin has become less volatile, it is still susceptible to significant price swings. In 2025 alone, the cryptocurrency faced a decline of up to 32%, with losses stretching into early 2026. Over a three-year period, it registered a peak-to-trough decline of 50%. However, this volatility isn’t exclusive to bitcoin; Tesla experienced a deeper drawdown of 54% during the same timeframe, and Nvidia’s worst point saw a 37% decline.
The data points to a broader trend where high-growth technology stocks display volatility levels comparable to, or even exceeding, bitcoin. Notably, during the market downturn in 2022, bitcoin suffered a staggering 77% decline from its peak, contrasting with declines of 74% for Tesla and 66% for Nvidia. Yet, across a five-year period, Tesla’s volatility metrics still surpassed bitcoin’s.
When juxtaposing bitcoin with commodities, the report indicates that silver futures exhibit more erratic day-to-day price movements, albeit with smaller overall drawdowns. Conversely, gold has shown steadier gains with lower volatility.
Within the cryptocurrency landscape, bitcoin’s stability stands in contrast to that of Ethereum, which continues to experience higher volatility and larger drawdowns. Since 2021, the gap in volatility between these two assets has widened, underlining bitcoin’s maturation as a more stable investment.
Schwab attributes this evolution to bitcoin’s increasing integration into mainstream finance. A significant marker of this acceptance is Morgan Stanley’s progress toward launching its spot Bitcoin ETF, MSBT. This potential approval would mark a landmark moment, making it the first spot BTC ETF from a major U.S. bank, differentiating it from existing offerings from asset management giants like BlackRock and Fidelity.
This shift in bitcoin’s volatility and its growing representation within traditional financial markets underscore a notable transformation, as it becomes recognized as a serious contender among conventional investment assets.
