Bitcoin’s annualized volatility has reached a historically low level relative to gold, standing at just 2.2 times the volatility of the precious metal.
This data point, representing the smallest ratio recorded, indicates Bitcoin is currently only slightly over twice as volatile as gold. While both assets have delivered comparable absolute returns since 2021, this shift suggests gold may now offer more stable value preservation characteristics compared to Bitcoin.
The narrowing volatility gap potentially signals a shift in investment preferences during periods of market uncertainty, with some investors reassessing perceived stability. Monitoring Bitcoin’s volatility ratio against gold provides a key metric for investors evaluating its risk profile relative to the traditional store of value.
This development points towards a maturing market perception and could influence portfolio diversification strategies, particularly among wealth preservation-focused investors who may find gold’s lower price swings increasingly appealing for stabilizing broader portfolios.