Bitcoin’s Volatility Has Fallen Within S&P 500 Ranks, Study Shows

According to reporting by Bitcoin Magazine, a study by crypto asset manager Grayscale shows that bitcoin’s realized volatility now falls within the distribution of S&P 500 constituents. Grayscale's head of research, Zach Pandl, stated that the asset's price swings have narrowed due to maturity, deeper liquidity, broader institutional participation, and regulated access venues.

Grayscale reported that bitcoin’s volatility declined to 43% over the past year, down from an average of 64% over the past decade and 81% five years ago. This puts bitcoin's volatility lower than that of 19% of S&P 500 constituents. Data from K33 Research indicated that 2025 was the asset's least volatile year yet.

While bitcoin historically experienced drawdowns exceeding 80%, market conditions have shifted following increased investor participation and the 2024 approval of U.S. spot bitcoin exchange-traded funds. In 2026, bitcoin dropped over 50% from an all-time high of $126,080 reached last October, but later recovered to trade at $82,485. Additional factors, such as the U.S. Treasury's liquidity-support buyback operations and currency hedging trends, also influenced market activity.