Bitcoin’s price swings are becoming increasingly subdued compared to gold, reaching their tightest margin on record and sparking debate about the cryptocurrency’s ability to continue outperforming the precious metal.
According to Bloomberg Intelligence strategist Mike McGlone, Bitcoin’s 260-day annualized volatility as of August 1 stood at just 2.2 times that of gold — the lowest level ever recorded. Historically, Bitcoin has averaged more than three times the volatility of gold while often delivering higher returns, but this narrowing gap could signal a shift in performance dynamics.
McGlone argues that Bitcoin’s reduced volatility removes part of its speculative allure. “The shrinking risk premium is not necessarily a positive sign for those betting on Bitcoin to lead the market,” he suggested. The concern is that, without its characteristic volatility edge, Bitcoin may struggle to decisively outperform gold in the long run.
Range-Bound Performance
The Bitcoin-to-gold price ratio has remained locked in a sideways range for years, failing to push past key resistance levels since late 2021. Even after BTC surged to a new all-time high above $123,000 earlier in 2025, it still could not break through the upper boundary of the ratio, highlighting gold’s steady competitive strength.
Risk-Off Scenarios Could Favor Gold
McGlone warns that Bitcoin’s “risk-on” nature could work against it if broader market sentiment turns cautious in the second half of the year. Suppressed volatility in the S&P 500 could revert to its historical average, potentially triggering a pullback in risk assets. In such an environment, gold could benefit from renewed safe-haven demand and might climb beyond $3,500 per ounce — and possibly challenge the $4,000 mark it has been testing.
Diverging Outlooks Despite Strong 2025 Gains
Both Bitcoin and gold have had a strong year so far. Bitcoin’s rapid climb earlier in 2025 reignited enthusiasm among investors, while gold has also posted impressive gains, reinforcing its role as a hedge in uncertain times. Yet, the convergence in volatility between the two assets suggests their paths forward could diverge.
If market conditions remain stable under President Donald Trump’s administration, McGlone suggests 2025 might be remembered as a year of record-setting gold prices, while Bitcoin could face headwinds from waning speculative momentum and a tightening volatility profile.
For now, the data points to a rare moment in history — one where Bitcoin’s wild swings no longer vastly outpace gold’s, forcing investors to reassess which asset truly holds the upper hand.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
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