Bitcoin (BTC) volatility compared to gold has skyrocketed to a history-low flag, earning a red flag about the future performance of cryptocurrency compared to traditional safe haven assets.
As of August 1, Bitcoin’s 260-day annual volatility was just 2.2 times the lowest rate on record, gold. Bloomberg Intelligence Senior strategist Mike McClone on August 4th.
Since 2021, Bitcoin has typically averaged more than three times the volatility of gold, whilst offering similar returns.
He noted that stricture risk premiums are a troubling sign of Bitcoin’s ability to outperform in the future.
https://twitter.com/mikemcglone11/status/1952329329523794247
This contraction of volatility comes when Bitcoin struggles to decisively outweigh gold despite taking considerable risks over the past four years. The Bitcoin and Gold price ratio remains in the range, unable to outperform key resistance near the 9.0 level and was tested again in the second half of 2021 in early 2025.
McGlone warned that as the broader market risk appetite decreases, the “risk-on” nature of Bitcoin could oppose it later in the year.
Gold’s next price target
The strategist noted that it would curb the volatility of the S&P 500 and warned of a potential return to the average of risky assets. In such a scenario, gold, a “risk-off” asset, could surge beyond the $3,500 level.
Going forward, McGroen suggested that 2025 could be considered a success in the second Donald Trump terminology, except for one outstanding record-setting gold price.
By contrast, Bitcoin can be delayed as it tightens volatility, decreasing speculative appeal and places emphasis on its performance.
This outlook has recently hit a record record record of over $123,000, with gold coming across fresh resistance near $4,000 despite both assets delivering strong profits in 2025.
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