Bitcoin has seen a significant decrease in volatility, from a peak of 60% at the start of 2025 to around 30%. This drop may attract big institutional investors who previously bailed out during periods of high price swings. According to Nikolaos Panigirtzoglou, a strategist at JPMorgan, if Bitcoin’s volatility continues to fall and aligns with assets like gold, investment allocations might follow suit. He stated: ‘Expect that the allocations to Bitcoin by institutional investors could match those of competing asset classes such as gold if there is convergence in volatilities.’ JPMorgan notes that this convergence is already present. A significant portion of corporate treasurers have pulled their Bitcoin out of circulation, leading to a decrease in trading volume and volatility. These changes are creating a more stable environment for the cryptocurrency.