Bitcoin's Volatility Decreases 13% as Institutional Interest Grows

Philippe Laffont, the founder of Coatue Management, recently spoke at a summit in New York, highlighting the evolving role of Bitcoin in investment portfolios. Laffont noted that Bitcoin's volatility has significantly decreased, making it a more stable asset. Despite a 13% increase in Bitcoin's value in 2025, its price swings have become less pronounced, which has historically deterred Coatue from investing in the cryptocurrency. Laffont observed that Bitcoin's beta, a measure of its volatility relative to the market, has been declining over time, indicating a more consistent performance.

Laffont also pointed out that the launch of Bitcoin ETFs by major financial institutions, such as BlackRock, signals the maturation of Bitcoin as an asset class. He recalled that Bitcoin experienced a significant decline in 2022, losing more than 60% of its value. However, this drop was more pronounced compared to the fluctuations experienced after other market events, such as Trump's tariff announcement in April 2025. Laffont noted that during this period, Bitcoin's price decreased by only 5%, while the Nasdaq index fell by more than 6%, demonstrating Bitcoin's growing resilience to market risks.

Additionally, Laffont highlighted that the rate at which coins held in Bitcoin wallets for at least a month are being sold has decreased significantly. This trend suggests that investors are shifting away from short-term speculation and are increasingly viewing Bitcoin as a long-term store of value. Laffont emphasized that Bitcoin's share in total global wealth is still relatively low, at around 0.4% or $2 trillion. He predicted that as more people recognize Bitcoin's value, its share in global wealth will inevitably increase, making it a more central asset in investment portfolios.

Despite the positive outlook, Laffont cautioned investors not to overemphasize Bitcoin's weight in their portfolios. He advised that a small but long-term position in Bitcoin can be less stressful and more profitable. Laffont also acknowledged that Coatue had previously missed the Bitcoin opportunity due to their inability to think simply about the asset's value. He emphasized that in the investment world, focusing on assets that people believe are valuable is often more profitable than relying on complex models.

Coatue Management, a technology-focused hedge fund, has invested in various cryptocurrency and technology companies, including Dune Analytics, Bitcoin miner Hut 8, and artificial intelligence firm CoreWeave. Laffont noted that the investment community is increasingly recognizing the value of Bitcoin, with a growing number of investors moving away from short-term speculation and adopting a long-term perspective. He also observed that the group of cautious investors who are hesitant to enter the crypto market is decreasing each year.