Bitcoin's Volatility Now Within Range of S&P 500 Stocks, Grayscale Finds

Is buying bitcoin riskier than investing in stocks? Not necessarily.

Research from crypto asset manager Grayscale showed bitcoin's realized volatility now sits within the distribution of S&P 500 components, with a significant number of large-cap equities recording wider price swings.

Bitcoin rallied in August and September, producing its strongest quarter in years and prompting several analysts to say a bull market has returned.

"As the asset has matured, with deeper liquidity, broader institutional participation, and more regulated access venues, its price swings have narrowed considerably from the extremes of its early years," Zach Pandl, Grayscale's head of research, said in a Wednesday note.

"That shifts the question from whether to own a volatile asset to how to size an allocation."

Pandl went on to say that the cryptocurrency's volatility has fallen to 43% over the past year from an average of 64% over the past decade and 81% five years ago.

That figure is now lower than the volatility of 19% of S&P 500 constituents. "For those comfortable owning volatile equities, Bitcoin’s price fluctuations may be less daunting than assumed," the report said.

Figures released by K33 Research in December showed 2025 proved to be the asset's least volatile year yet.

In its early days, bitcoin became known for extreme price swings, with drawdowns of more than 80% within a matter of months.

However, the influx of capital into the asset, particularly after U.S. spot bitcoin exchange-traded funds won approval in 2024, has made its price harder to shift.

Even so, at one point in 2026 bitcoin traded more than 50% below the all-time high it set the previous October. The price has since bounced back and has recently traded at $82,485, still 35% below the record of $126,080.

In August, bitcoin drew support from news that the U.S. Treasury would make its liquidity-support buyback operations at least double in size. The so-called debasement trade, in which investors buy an asset to hedge against a weak currency, has regained popularity, particularly as the dollar has weakened.