A recent report from Grayscale indicates that Bitcoin's one-year realized volatility has dropped to 43%. This figure marks a significant decline from 81% recorded five years ago and sits below the ten-year average of 64%.
The current volatility level of Bitcoin now falls within the range of components in the S&P 500 index. According to the analysis, Bitcoin's volatility is lower than that of 19% of the stocks included in the S&P 500.
Grayscale attributes this stabilization to the maturation of the market. Factors such as increased liquidity, broader institutional participation, and the introduction of regulated spot ETFs have contributed to reducing extreme price swings.
The firm suggests that Bitcoin no longer belongs to a separate risk category and can be managed using standard portfolio tools like position sizing. However, the report cautions that one year of data is insufficient to predict behavior across full market cycles.
