Volatility
A measure of how strongly a price fluctuates, usually given as annualised standard deviation in per cent. Bitcoin fluctuates much more than a broad stock index or gold – up and down.
Alsoprice swingsprice fluctuationvolannualised volatility
Volatility describes how strongly a price fluctuates – in either direction. It usually means the standard deviation of daily price changes, scaled up to a year and given as a percentage.
Bitcoin compared
In the twelve months to 30 June 2026, volatility was 40% for bitcoin, 26% for gold and 12% for the US stock index S&P 500, according to BlackRock. Around ten years ago, bitcoin regularly exceeded 100%.[1] For context: BlackRock offers Bitcoin products itself.
What 40% means in practice
Put simply: swings of around 40% within a year are nothing unusual. $10,000 can turn into $6,000 or $14,000 without any particular reason. It can go deeper, too: from the peak in October 2025 to June 2026, the price fell by more than half (drawdownGlossaryDrawdown (decline from the peak)The decline of a price from its last peak to the following low, as a percentage. Bitcoin has fallen by more than 75% several times; from October 2025 to June 2026, it fell by around 53% (in US dollars).On the learning path: Stage 3 · Step 3 – Returns & risk →In the glossary →).[1] The live charts show how it is moving right now.
What this means for you
- Only invest money you won’t need for a long time.
- Decide in advance how you will react if your holdings halve.
- A savings planGlossarySavings plan (Bitcoin savings plan)Automatically buying bitcoin at fixed intervals with a fixed amount, for example $50 a month. A savings plan takes the question of the right moment off your hands, but doesn’t promise a higher return.On the learning path: Stage 4 · Step 4 – Setting up a savings plan →In the glossary → spreads your entry over time; rebalancingGlossaryRebalancingBringing your asset allocation back to its planned shares. If the bitcoin share has risen sharply, you sell some; if it has fallen, you top up. This keeps your risk within the limits you set yourself.On the learning path: Stage 3 · Step 3 – Returns & risk →In the glossary → keeps bitcoin’s share of your wealth within the planned range.
Related terms
These terms are closely connected.
- This termVolatility
- Drawdown (decline from the peak)The decline of a price from its last peak to the following low, as a percentage. Bitcoin has fallen by more than 75% several times; from October 2025 to June 2026, it fell by around 53% (in US dollars).
- All-time high (ATH)The highest price bitcoin has ever reached. As of September 2026, it dates from 6 October 2025: $124,728 (daily close).
- RebalancingBringing your asset allocation back to its planned shares. If the bitcoin share has risen sharply, you sell some; if it has fallen, you top up. This keeps your risk within the limits you set yourself.
- Savings plan (Bitcoin savings plan)Automatically buying bitcoin at fixed intervals with a fixed amount, for example $50 a month. A savings plan takes the question of the right moment off your hands, but doesn’t promise a higher return.
- HODLCommunity slang for holding bitcoin for the long term, even when the price falls sharply. It began in 2013 with a typo (‘hodling’ instead of ‘holding’) in a forum post.
Explained in depth
These articles go into more detail:
- Stage 3 · Step 3Returns & riskWhat Bitcoin has returned since 2014, how deep the crashes were and how much it fluctuates compared with shares and gold – in US dollars, with sources and limits.
- Stage 2 · Step 3Criticism & risksPrice crashes, crime, quantum computers, bans, concentration and criticism from the ECB and Bundesbank: the main objections to Bitcoin, with data and context.
- Deep dive · Stage 6Psychology & disciplineFOMO, panic, loss aversion and confirmation bias: why emotions get expensive with Bitcoin, and how an information diet, if-then rules and an investment journal help.
More from „Money & economics“
Sources1 sources · 1 publishers
The superscript numbers in the text refer to these sources.
- Re-Underwriting Bitcoin: Still a Portfolio Diversifier After the Pullback? (Whitepaper) – BlackRock, 17.08.2026 (accessed 28/09/2026)
This entry is for education only and is not investment, tax or legal advice.