Lower Bitcoin market volatility often precedes significant bull runs, suggesting that the current trend could propel prices toward the $100,000 to $150,000 range.) volatility in the annual timeframe has dropped below that of top tech stocks, including Tesla, Meta, and Nvidia, signaling its growth toward becoming a more mature and stable asset class.
Gold prices surged with inflation after its decoupling from the U.S. dollar in 1971 and the legalization of its private ownership in 1974. As a result, the precious metal's volatility reached over 80 during the early 1970s—almost twice that of Bitcoin in April 2024.However, as gold became an established asset class with a more stable price range, its volatility decreased.
"Bitcoin was nearly half as volatile in 2024 at $60,000 when compared with 2021. When putting this all together, a thesis pointing toward a growing acceptance of Bitcoin due to potential maturation begins to emerge."Interestingly, the period of lower annualized Bitcoin realized volatility has preceded major price increases. In other words, accumulation sentiment among existing and new Bitcoin investors tends to rise when the price stabilizes.