Gold volatility tops Bitcoin in wildest price swings since 2008

Gold has become more volatile than Bitcoin, underscoring how the metal’s blistering rally has given way to drastic price swings that rival its most turbulent moments in the past two decades.

Thirty-day volatility in gold has climbed above 44%, the highest level since the 2008 financial crisis, according to data compiled by Bloomberg. That surpasses the roughly 39% for Bitcoin, the original cryptocurrency often dubbed “digital gold.”

It marks an unusual reversal, as gold is typically viewed as a steadier store of value than cryptocurrencies, which are known for being particularly susceptible to speculation. Since Bitcoin’s creation 17 years ago, gold has only been more volatile on two occasions, most recently last May during a flare-up in trade tensions sparked by tariff threats from US President Donald Trump.

The surge in volatility follows gold’s biggest plunge in more than a decade, extending a dramatic reversal of a rally that some traders said had run too far, too fast. Prices fell as much as 10% on Monday, briefly dropping to nearly $4,400 an ounce in Asian trading after peaking near $5,600 last week.

Economic uncertainty helped push precious metals to record highs that shocked even seasoned market participants. An already scorching rally accelerated sharply at the start of the year, as investors piled in on renewed concerns about geopolitical risks, currency debasement and the Federal Reserve’s independence. A wave of buying from Chinese speculators added further froth.

Bitcoin has failed to benefit from the same forces. The token slid to a 10-month low on Monday after a weekend selloff, extending a drop of more than 40% since its October peak. Despite geopolitical stress, dollar weakness and sharp swings in metals, Bitcoin has seen no rotation of capital from precious metals, making gold the wilder ride for now.

Gold, however, has maintained its status as the better safe-haven bet. It is up about 66% in the past 12 months, while Bitcoin is down 21%.