Bitcoin’s volatility appears to be diminishing as its movements in 2025 were more subdued than shares in Nvidia (NVDA), which Bitwise says shows its investor base is diversifying.
Bitwise said on Wednesday that Bitcoin (BTC) will continue to be less volatile than Nvidia in 2026 as “Bitcoin’s volatility has steadily declined over the past ten years.”
It added that the shift signals a “derisking” of the asset as its investor base has diversified due to the emergence of institutional investment products.
“This shift reflects the fundamental derisking of Bitcoin as an investment and the diversification of its investor base thanks to traditional investment vehicles like ETFs.”
Nvidia will be more volatile than Bitcoin in 2026
Bitcoin has seen a 68% price change from its lowest level this year, when it fell to $75,000 in April, to its highest level, which was the all-time high of $126,000 in early October.
Comparatively, Nvidia has seen more volatility with a 120% price swing from a low of $94 in early April to a 2025 high of $207 in late October.
Shares in the chip giant have also outperformed Bitcoin this year and are up 27% year-to-date. Bitcoin, meanwhile, has fallen 8% since the beginning of this year as crypto markets have decoupled from stocks.
Bitwise bets on new all-time high
Bitwise also made several bullish predictions for the coming year, including a new all-time high for Bitcoin and a break of the four-year cycle.
“Forces like the Bitcoin halving, interest rate cycles, and crypto booms and busts fueled by leverage are weaker than in past cycles,” it stated.
It said institutions like Citigroup, Morgan Stanley, Wells Fargo, and Merrill Lynch entering crypto, allocations to spot crypto exchange-traded funds (ETFs), and onchain building “will accelerate in 2026.”
Finally, the pro-crypto regulatory shift will continue to allow companies to adopt crypto at a faster rate, Bitwise said. It also predicted that crypto equities will outperform tech equities.
“Tech stocks have done well, up 140% over the past three years, but crypto equities are doing even better.”