Bitcoin’s Volatility: A Tale of Downswings and Upswings

New data from River sheds light on Bitcoin’s dynamic performance over the past five years, revealing a stark contrast to traditional assets like gold or the S&P 500. Analysis shows that Bitcoin has experienced more significant price drops than both during the same period, with approximately 20 5% dips, 13 10% corrections, and 7 instances of 20% drawdowns since 2020. This paints a picture of an asset prone to sharp swings in value. However, this volatility has proven beneficial for long-term investors. Bitcoin’s cyclical nature allows it to rebound quickly after dips, offering them buying opportunities amidst price fluctuations.