Gold, long considered a global safe haven, is now showing price behavior more commonly associated with speculative assets. According to article by GuruFocus and Bloomberg data, the metal’s 30-day volatility has surged above 44%, exceeding Bitcoin’s roughly 39% and reaching its highest level since the 2008 financial crisis.
This inversion is highly unusual. Since Bitcoin’s launch nearly 17 years ago, gold has been more volatile than the cryptocurrency only twice — most recently in May last year, during a spike in global trade tensions linked to tariff threats from US President Donald Trump.
From Safe Haven to High Volatility Asset
The recent spike in gold volatility comes after an aggressive rally followed by a sharp correction. As of February 3, gold is trading near $4,900, down significantly from last week’s peak close to $5,600. The drop marks the metal’s steepest decline in more than a decade.
The earlier surge was fueled by a combination of macro and geopolitical factors: rising global uncertainty, fears of currency debasement, growing concerns around the Federal Reserve’s independence, and heightened geopolitical risks. Market participants also point to heavy buying activity from Chinese investors, which may have amplified the move.
Crypto Fails to Capture Risk-Off Flows
Bitcoin, however, has not benefited from the same dynamics. The asset fell to a 10-month low following a weekend sell-off and is now down more than 40% from its October peak. The price action suggests there has been little capital rotation from traditional safe havens into crypto — despite a weaker dollar and escalating geopolitical stress.
More broadly, precious metals such as gold and silver are attracting increasing investor attention, while crypto markets remain under pressure. Bitcoin briefly touched $75,000, while Ethereum declined toward $2,200, further dampening market sentiment and sidelining risk appetite across the sector.
For now, volatility is no longer a defining feature exclusive to crypto. As gold’s price swings intensify, the traditional boundaries between “safe” and “speculative” assets are beginning to blur.