On October 9, 2024, Goldman Sachs reported that Bitcoin (BTC) has surged over 73% this year, peaking at $73,000 in March, yet its volatility remains a concern. Currently priced at $62,790, BTC is still 40% higher than January's opening price. Despite these gains, Bitcoin's year-to-date volatility ratio is just under 2%, significantly lower than gold's 3% risk-adjusted return, which has seen strong gains of 28% this year.
The analysis highlights Bitcoin's performance compared to major equity indices and other assets, noting that its volatility ratio is only better than Ethereum and a few other indices. This raises questions about Bitcoin's status as a 'safe haven' asset, especially in light of recent geopolitical tensions.
Market analysts remain optimistic, with predictions suggesting Bitcoin could see a 400% increase relative to gold by 2025. BlackRock has labeled Bitcoin a 'gold alternative,' while some experts forecast a potential rise to $100,000 by the end of 2024.
As Bitcoin continues to navigate its volatility, the crypto community is watching closely for signs of a rally, particularly in Q4, which historically has been favorable for BTC.