Volatility

Definition

Bitcoin's volatility measures how much its price fluctuates over a given period. It is typically expressed as annualized volatility (standard deviation of daily returns × √365). Bitcoin's volatility has declined structurally over time as its liquidity and institutional adoption have grown, although it remains far higher than that of gold or equities. For corporate treasuries, volatility affects the short-term carrying value of the balance sheet, but not the amount of BTC accumulated.