Bitcoin’s Volatility Compared to Gold Reaches Historic Low, Influencing Investment Strategies

Key Points

1. Bitcoin's volatility compared to gold hit an unprecedented low in 2025, with Bitcoin's annualized volatility at 45% (down 15% from 2024) and gold's at 12% (stable).

2. Bloomberg and ByteTree launched Bitcoin-Gold blend indices in early 2025, using volatility-based rebalancing to optimize asset allocation and support diversified portfolios.

3. Over $220 billion flowed into crypto investment products due to the convergence of Bitcoin and gold volatility, boosting investor confidence in cryptocurrencies.

4. ByteTree's rebalancing strategy adjusts Bitcoin's weight based on volatility metrics, aiming to optimize returns while managing risk effectively.

5. Market analysts highlight that blended indices allow investors to capture Bitcoin's growth potential while maintaining gold's safe-haven attributes.