The cryptocurrency landscape is witnessing a fascinating shift, as recent analyses by Bitwise indicate that Bitcoin’s price volatility is on a downward trajectory. As the digital currency continues to stabilize, it appears that Bitcoin’s fluctuations are becoming increasingly mild, especially when juxtaposed with the rapid price movements of tech stocks, notably Nvidia.
In 2025, Bitcoin experienced a price swing of approximately 68%, moving from an April low of $75,000 to a peak of $126,000 in early October. In stark contrast, Nvidia’s shares have fluctuated around 120%, with a dramatic leap from a low of $94 to a high of $207 in the same timeframe. These contrasting figures underscore a significant divergence in market dynamics this year.
Volatility Comparison Shows Shift
According to Bitwise, Bitcoin is anticipated to maintain a calmer presence compared to Nvidia through 2026. The firm noted, “BTC already less volatile than Nvidia in 2025… thanks to institutional inflows & ETFs,” highlighting how traditional investments are reshaping the price landscape of cryptocurrencies.
This transformation is prominently attributed to an influx of institutional money entering the crypto sphere via instruments like spot ETFs. The effect of such investments is clear: they tend to stabilize Bitcoin’s price, smoothing out the historical volatility that has characterized its journey thus far.
Institutional Entry and the Bull Case
Beyond the volatility metrics, Bitwise presents a bullish outlook for Bitcoin heading into the next year, forecasting potential all-time highs. They cited several factors fueling this optimism: the upcoming Bitcoin halving, evolving interest rate cycles, and a less pronounced boom-and-bust cycle compared to previous years.
Notably, the firm pointed to major financial institutions like Citigroup, Morgan Stanley, Wells Fargo, and Merrill Lynch as prospective entrants into the crypto market, which could further spur institutional allocations to spot crypto ETFs. Enhanced blockchain activity could also emerge as these institutional giants begin to adapt to the new financial environment.
However, this rosy projection is tempered by recent trends revealing significant selling activity among long-term Bitcoin holders. Reports indicate that around 1.6 million bitcoins, which had remained dormant for over two years, have begun to circulate again since early 2023.
This revitalization of dormant assets is a staggering volume, valued at an approximate $140 billion. Moreover, data shows that nearly $300 billion worth of coins that had been inactive for more than a year made their way back to the market throughout 2025.
Market Divergence and Near-Term Pressure
The differing performance between cryptocurrencies and tech equities is also noteworthy. While Nvidia shares have increased by 27% in 2025, Bitcoin has faltered, showing an approximately 8% decline year-to-date and a significant withdrawal of nearly 30% from its historic high above $126,000.
This gap highlights an ongoing disconnect between Bitcoin and leading tech stocks, creating a landscape where selling pressure from long-term holders complicates the bullish narrative and impacts price recovery. Market sentiment remains cautious as investors observe these shifting patterns, hoping for a robust rebound in the crypto space.
Featured image from Unsplash, chart from TradingView
