Bitcoin Volatility Hits Decade Low, Now Rivals Tech Stocks
▼ Summary
– Bitcoin’s volatility has dropped to levels similar to large-cap tech stocks, making it more attractive to institutional investors.
– Adding a 5% Bitcoin allocation to portfolios more than doubles risk-adjusted returns, while a 10% allocation triples them.
– Bitcoin represents only 0.2% of global financial assets, indicating substantial room for further institutional adoption.
– Since 2015, Bitcoin has consistently outperformed major U.S. tech companies like Apple and Microsoft.
– Ethereum is seeing growing institutional adoption, with nearly 8% of its supply held in ETFs and corporate treasuries.
Bitcoin’s price volatility has reached its lowest point in more than ten years, bringing its behavior remarkably in line with that of major technology stocks. According to recent analysis, this shift marks a significant departure from Bitcoin’s earlier reputation as a wildly unpredictable asset. A new report from Bitcoin Suisse highlights that even a small allocation of Bitcoin within an investment portfolio can substantially improve risk-adjusted returns, suggesting growing confidence among institutional players.
The study points to Bitcoin’s newfound stability as a central reason behind changing attitudes in the investment community. Its volatility now closely mirrors that of established large-cap tech firms, signaling a maturation driven by deeper market participation and structural developments like the introduction of ETFs and corporate treasury adoption. This evolution supports the argument that Bitcoin is transitioning into a mainstream financial asset.
Andrej Majcen, CEO and co-founder of Bitcoin Suisse, observes that Bitcoin’s convergence with blue-chip tech volatility opens the door for its thoughtful inclusion in diversified portfolios. He emphasizes that this isn’t a temporary shift but reflects broader institutional engagement and market sophistication.
One of the most compelling insights from the research involves portfolio performance. Including just five percent Bitcoin more than doubles risk-adjusted returns, dramatically improving the balance between potential gains and exposure. Raising that portion to ten percent nearly triples those returns while adding only a marginal increase in overall volatility. These findings illustrate Bitcoin’s capacity to enhance both growth and stability, strengthening the case for its strategic use in asset allocation.
Despite its impressive track record, Bitcoin still represents a tiny fraction of global financial assets, approximately 0.2 percent. This small share indicates there is enormous room for institutional growth. The report describes current adoption as still in its early phases, with significant potential for expanded allocation as more investors recognize its portfolio benefits.
Since 2015, Bitcoin has consistently outperformed leading U.S. tech giants, including the prominent “Magnificent 7” stocks such as Apple, Microsoft, and Alphabet. This sustained advantage reinforces its identity not only as a pioneering digital currency but also as a high-return asset class capable of delivering standout results in a diversified investment strategy.
Majcen notes that Bitcoin’s ability to outpace top tech firms underscores its evolving function, from speculative digital asset to core portfolio holding for those seeking growth.
The report also sheds light on Ethereum, noting that nearly eight percent of its total supply is now held in ETFs and corporate treasuries. Ethereum is increasingly seen not just as a smart contract platform but as essential infrastructure for tokenization and stablecoin settlement. This expanding institutional role positions Ethereum at the center of digital finance, supporting a growing ecosystem of tokenized assets and decentralized applications.
(Source: Economy Middle East – Technology & Innovation)