Flows of money into new investment products have increased stability in the price of Bitcoin, as more mainstream investors seek to tap the growth potential of digital assets, according to Bloomberg analyst Eric Balchunas.
Bitcoin Volatility at Record Low Influenced by ETF Flows, Analyst Says
5 August 2025 - 08:57 CEST
Since the launch of spot ETFs (exchange-traded funds) in January 2024, price volatility on the coin has continuously declined and hit a record low, Bloomberg's ETF analyst Eric Balchunas noted on 4 August. In a post on X, Balchunas noted that “since the launch of the ETFs the volatility on bitcoin has plummeted. The 90-day rolling vol is below 40 for the first time- it was over 60 when the ETFs launched.”
Source: @EricBalchunas/X
When compared with gold, the historically stable safe-haven asset, volatility is now less than double, while previously it was more than 3x.
Balchunas added that the stability “has helped [Bitcoin] attract even bigger fish and gives it fighting chance to be adopted as currency.” With fewer extreme price swings and painful crashes, institutional investors like Blackrock and other mainstream financial actors are increasingly interested in the asset.
Other commenters on X also noted that stability is being brought about by regulatory clarity, as crypto regulations around the world get implemented.
