Bitcoin Volatility Drops Below Nvidia and Tesla Stock Levels
Bitcoin's historical volatility fell to 42% in 2025, roughly half its 2021 level. Charles Schwab analysts note it now sits below several Magnificent Seven stocks.
Bitcoin Now Less Volatile Than Nvidia and Tesla
Analysts at Charles Schwab have highlighted a significant decline in Bitcoin's volatility. In 2025, the leading cryptocurrency's historical volatility (HV) stood at 42%, compared to approximately 80% in 2021 — a roughly twofold reduction over four years.
Bitcoin's average true range as a percentage of price (ATR/P) also halved during the same period, dropping from 6.8% to 3.4%.
Bitcoin's HV has fallen below the volatility levels of several Magnificent Seven members — the largest U.S. technology companies. Nvidia's HV sits at 50%, while Tesla's reaches 63%. Meanwhile, BTC's volatility is not far from silver futures, which register at 38%.
Why This Matters
Bitcoin's volatility declining to levels comparable with — or even below — major technology stocks marks a significant shift in how the asset is perceived by both institutional and retail investors. When the world's largest cryptocurrency exhibits smaller price swings than leading tech giants, it strengthens its credentials as a legitimate investment vehicle. Charles Schwab attributes this "evolution" to Bitcoin's growing integration with traditional financial infrastructure.
Drawdown Comparison: BTC vs. Tech Giants
Charles Schwab analysts also examined maximum drawdowns across these assets. Over the past three years, Bitcoin's deepest drawdown reached 50%. Tesla fell further at 54%, while Nvidia experienced a 37% decline during the same window.
The five-year perspective tells a different story. During the 2022 equity bear market, all three assets suffered sharp drops. Bitcoin fell the hardest, plunging 77% from peak to trough. Tesla declined 74%, and Nvidia lost 66%.
Current Landscape and Outlook
According to Charles Schwab's research, Bitcoin investors endured their largest drawdown in several years during late 2025 and early 2026, with the asset losing nearly half its value. While volatility has since normalized, analysts caution that BTC remains capable of sharp price swings.
Within the broader crypto market, Bitcoin's relative stability has become more pronounced. Ethereum, by contrast, continues to trade with higher volatility and deeper drawdowns.
Separately, an analyst known as Darkfost has identified large-scale withdrawals from cryptocurrency exchanges — a pattern that may suggest investors are transitioning into an accumulation phase.
Frequently Asked Questions
What is Bitcoin's volatility in 2025?
According to Charles Schwab, Bitcoin's historical volatility (HV) in 2025 stands at 42%. This is roughly half the level seen in 2021, when HV was approximately 80%.
Is Bitcoin less volatile than Nvidia and Tesla stocks?
Yes, as of 2025, Bitcoin's HV of 42% is lower than both Nvidia (50%) and Tesla (63%). BTC's volatility is also approaching that of silver futures, which sit at 38%.
What was Bitcoin's largest drawdown in the last three years?
Over the past three years, Bitcoin's deepest drawdown reached 50%. During the same period, Tesla fell 54% while Nvidia declined 37%.
Why does lower Bitcoin volatility matter?
Lower volatility brings Bitcoin closer to traditional assets in terms of risk profile, making it more appealing to institutional investors. Charles Schwab attributes this shift to Bitcoin's increasing integration with traditional financial systems.
How much did Bitcoin drop during the 2022 bear market?
During the 2022 bear market, Bitcoin plunged 77% from peak to trough. This exceeded both Tesla's 74% decline and Nvidia's 66% drawdown over the same period.
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