If the volatility would stay close to 1% for extended periods of time, I would already no longer consider it an excessively volatile/risky asset. This is approximately the value reached by gold or also most currencies (other than USD, Euro, CNY etc.), I have mentioned the BRL earlier in this thread as an example with a volatility close to gold's, and if we could reach this value BTC would begin to be usable as a currency.

The problem is that Bitcoin's volatility still tends to spike in some occasions. Currently it's again over 1% due to the dip in the last days, but the value is still in gold's range, with 1,2-1,3%. But earlier spikes (in particular the February 2025 dip, the strongest since 2022, and the a little less deep but more volatile August 2024 dip) were about 3%, which is still a quite high value.

For me the next "milestone" is when we don't surpass 2% in the 30- and 60-day volatility for at least a year, and the deepest dip in a 4-year period doesn't go down more than 50% compared to the previous ATH.