Bitcoin Volatility Nears U.S. Stock Levels: Insights from Bloomberg ETF Analyst Eric Balchunas

Bitcoin’s volatility has notably decreased over the past year, signaling a shift in its risk profile relative to traditional equities. According to Bloomberg Senior ETF Analyst Eric Balchunas, the 60-day volatility ratio of the Bitcoin Spot ETF (IBIT) compared to the S&P 500 Index (SPX) has contracted significantly. Previously, IBIT’s volatility was approximately 5.7 times greater than the SPX, but recent data indicates this ratio has narrowed to just above 1. This convergence suggests that Bitcoin’s price fluctuations are now nearly aligned with those of major U.S. stocks, reflecting increased market maturity and potential stabilization. Investors and portfolio managers should consider this evolving volatility dynamic when assessing Bitcoin’s role within diversified investment strategies, as it may influence risk-adjusted returns and asset allocation decisions in the crypto and traditional financial markets.