Financial market observers have noticed a striking phenomenon: since the launch of the Bitcoin exchange-traded fund (ETF), the price volatility of this digital currency has shown a clear trend of convergence.

Data shows that the 90-day rolling volatility of Bitcoin has dropped below 40 for the first time, contrasting sharply with the level of over 60 during the early days of the ETF listing. This change signifies that the Bitcoin market may be entering a relatively stable new phase.

What is even more noteworthy is that the volatility gap between Bitcoin and traditional safe-haven asset gold is narrowing. Currently, the volatility of Bitcoin is less than twice that of gold, which shows a significant improvement compared to the past situation of over three times.

This reduction in volatility may reflect the stabilizing effect brought about by institutional investors entering the market through ETFs. It may indicate that Bitcoin is gradually being accepted by a broader group of investors and could have a positive impact on its position within the mainstream financial system.

However, investors should remain cautious, as the volatility of Bitcoin is still higher compared to traditional assets. Market participants should continuously monitor whether this trend can be sustained in the long term and its potential profound impact on the entire cryptocurrency ecosystem.