Gold Surpasses Bitcoin in Volatility

Gold's 30-day volatility surpasses Bitcoin, reaching highest level since 2008.

The 30-day volatility of gold has surged above 44%—the highest level since the financial crisis of 2008. This figure has surpassed that of Bitcoin, which stands at 39%, according to Bloomberg. 

Such an inversion is rare in the market. Traditionally, the precious metal is considered a more stable asset compared to cryptocurrencies. 

In the 17 years of digital assets’ existence, gold has only been more volatile than Bitcoin twice. The last occurrence was in May amid escalating trade wars.

The increase in volatility followed a sharp drop in prices. On February 2, the price of the precious metal fell by 10%, momentarily reaching $4,400 per ounce. A week earlier, the asset’s value was at a peak of around $5,600.

The rally at the beginning of the year was fueled by geopolitical risks and concerns about the independence of the Fed. However, the leading cryptocurrency did not benefit from these factors.

Bitcoin’s price fell to a 10-month low, losing more than 40% from its October peak. Meanwhile, gold maintained its lead in returns: over the past 12 months, it has risen by 75%, whereas the digital asset has lost 18%.

Back in January, the precious metal outperformed the flagship of the crypto market in five-year returns.