Bitcoin solidifies its position as a secure investment option

Markets 2025-12-19 09:50

Digital asset manager Bitwise Asset Management says that Bitcoin’s price swings in 2025 were lower than those of Nvidia (NVDA),  a bellwether of tech stock volatility, and this trend is expected to continue into 2026.

Analysts say the shift signals growing maturity in Bitcoin’s investor base and changing dynamics between traditional and digital assets. The crypto company claimed that this change arose from a shift in focus, as illustrated by Bitcoin investors, who are becoming increasingly diverse.

This announcement was made public after Bitwise shared its prediction, noting that BTC will maintain a low volatility compared to Nvidia in the upcoming year, arguing that “Bitcoin’s volatility has been decreasing consistently over the last decade.” 

Bitcoin solidifies its position as a secure investment option

The recent trend demonstrated by Bitcoin has highlighted that the cryptocurrency is reducing the risks associated with it. Hence, attracting the interest of various types of investors who are actively participating in the cryptocurrency market due to the presence of new institutional investment products.

Following this finding, Bitwise argued that Bitcoin is solidifying its position as a low-risk investment. The company also mentioned that the cryptocurrency’s investors are becoming increasingly varied due to the existence of traditional investment alternatives, such as ETFs.

In the meantime, data from reliable sources indicated that as of 2025, Bitcoin experienced significant price swings, falling to approximately $75,000 in April before rising to an all-time high of around $126,000 in early October.

Nvidia, on the other hand, experienced a wider price swing than BTC, amounting to 120%. This included a decrease of $94 in early April, then a rise of $207 in late October 2025. 

Notably, at some point this year, shares of the leading chipmaker surpassed those of Bitcoin, increasing 27% so far. At this particular moment, the digital asset had declined 8% at the beginning of the year. Responding to this situation, investors raised concerns about the fate of the digital asset. 

In an attempt to address this controversy, analysts alleged that the drop was a result of a shift in focus observed in the cryptocurrency markets away from stocks.

However, despite concerns raised and negative results about Bitcoin, Bitwise still shared several positive predictions set to take effect next year. An example included a forecast suggesting that the cryptocurrency will record a new peak and finally put an end to its four-year cycle.

According to the company, influences such as the Bitcoin halving, interest rate trends, and price fluctuations in the cryptocurrency market, fueled by leverage, were not as firm as they initially were in the previous cycles. 

Bitwise predicted that the crypto market would draw the attention of many individuals in 2026

Following the positive predictions made regarding Bitcoin and the exemplary changes it demonstrates, Bitwise speculated that more traditional financial institutions, such as Citigroup, Morgan Stanley, Wells Fargo, and Merrill Lynch, will soon become active participants in the cryptocurrency market.

The firm also anticipates that spot crypto exchange-traded fund investments will surge significantly, and on-chain development will accelerate next year.

Regarding the establishment of suitable cryptocurrency regulations, Bitwise noted that this crypto-friendly regulation will play a crucial role in enabling firms to adopt cryptocurrencies swiftly. The company also predicted that crypto stocks will surpass those of technology companies.

To elaborate on this prediction, Bitwise noted that, “Tech stocks have performed well, increasing by 140% over the last three years, but crypto stocks are doing even better.”

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This content is for informational purposes only and does not constitute investment advice.

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