Bitwise CIO Matt Hougan stated that Bitcoin (BTC) is transitioning from a speculative asset to "digital gold," with its annual volatility dropping to 44% over the past year.

BTC Volatility Declines Across Multi-Year Periods

According to Hougan, Bitcoin's annual volatility was 66% over the past 10 years, decreased to 52% over five years, 47% over three years, and reached 44% in the last year. He views this reduction in volatility as a sign of the asset's "maturing." These points are detailed in the article "Bitcoin is Right on Schedule".

Comparison with Nasdaq 100, NVIDIA, and Tesla

Hougan estimates that in the near future, BTC volatility could fall below the current level of the Nasdaq 100, which stands around 20–25%. Over the past five years, Bitcoin has already been about as volatile as NVIDIA and less volatile than Tesla.

Impact of 1% BTC in a Traditional Portfolio

According to Hougan's calculations, adding 1% BTC to a classic stock and bond portfolio since 2015 would have increased its volatility only from 9.8% to 10%, while boosting average annual returns by nearly 1 percentage point.