Bitcoin Volatility Falls Below S&P 500 and Nasdaq
Bitcoin outperformed expectations in April, recording double-digit gains while exhibiting less volatility than several major traditional assets.
Data from Galaxy Digital revealed that Bitcoin’s realized volatility over the past 10 trading days dropped to 43.86 — notably lower than the S&P 500’s 47.29 and the Nasdaq 100’s 51.26.
Analysts described this as an unusual development for a digital asset traditionally associated with high volatility.
These figures emerge amid heightened financial uncertainty.
Since US President Donald Trump’s Liberation Day tariff announcement on April 2, traditional markets have shown signs of instability.
The Nasdaq Composite remained flat, the Bloomberg Dollar Index declined by nearly 4%, and gold — often considered a safe-haven asset — briefly reached $3,500 per ounce before retreating to a 5.75% gain, according to Galaxy Digital’s May 12 note.
In contrast, Bitcoin rose 11% over the same timeframe, highlighting its emerging role as a macro hedge in times of geopolitical and economic uncertainty.
Galaxy analysts observed that while Bitcoin’s 30-day correlation with major indexes remains elevated — 0.62 with the S&P 500 and 0.64 with the Nasdaq — its beta has declined.
This indicates that investors are beginning to view Bitcoin less as a speculative asset and more as a long-term investment.
“Bitcoin as a non-sovereign asset means an investor doesn’t need the full faith or tax basis of a nation to support the integrity of the asset,” said Chris Rhine, head of liquid active strategies at Galaxy.
Galaxy also drew parallels between current market dynamics and the 2018–2019 US-China trade tensions, noting that Bitcoin similarly rallied during periods of heightened global uncertainty.
Kronos Research CEO Hank Huang told Cointelegraph that increasing ETF inflows and continued Bitcoin acquisitions by Strategy are reshaping Bitcoin’s image into that of a digital gold, increasingly detached from equities.
“As institutions deepen liquidity, volatility drops, making Bitcoin a cornerstone for portfolios,” Huang added.
Galaxy’s OTC trading desk described the current market stance as “tactically cautious but structurally constructive,” characterized by prudent leverage and minimal hedging stress.
With 95% of Bitcoin’s total supply already mined and rising interest from institutions, ETFs, and even governments, Bitcoin’s perception as a digital store of value continues to strengthen.
“Bitcoin’s supply and demand dynamics are solidifying its place as a mature digital store of value,” said Ian Kolman, co-portfolio manager at Galaxy.
On April 25, Jay Jacobs, BlackRock’s head of thematics and active ETFs, commented on a broader trend of countries reducing reliance on dollar-based reserves in favor of assets like gold and, increasingly, Bitcoin.
He emphasized that geopolitical fragmentation is driving demand for uncorrelated assets, positioning Bitcoin alongside gold as a growing safe-haven asset.
Sources:
https://cointelegraph.com/news/bitcoin-volatility-falls-below-sp500-nasdaq-galaxy-digital
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