Posted on May 16, 2018 4:38 am

BitCoin Volatility Compared To Dollar Volatility

I was looking at a chart of the US Dollar and had this random thought.

Hey, some of these moves look remarkably similar to another currency’s.

Here’s the all-time dollar chart…

[source – awesome economic data tool]

Here’s Bitcoin’s…

[source][I added the log as well because that makes the moves a bit more fair to compare].


Then I went looking for an all-time dollar volatility chart…and realized someone already had this idea and wrote a great read.

The apt beginning of the writer’s conclusion makes the point I was trying to get at.

The short answer is that Bitcoin’s biggest volatility moves are more intense than the dollar’s volatility moves historically. And that shouldn’t be surprising. Here’s a bit more detail.

First, the longest overall downward streak in the U.S. Dollar Index that led to the highest decline in the value of the U.S. dollar was between January 2002 and December 2004. That’s nearly three years. The index dropped by about 32.8 percent during that period.

By comparison, Bitcoin’s sharpest downward streak that led to the highest decline in price was between January 2014 and April 2014 — about three months. The digital currency lost about 60 percent of its value during that period. There was no time over the last three decades that the U.S. dollar lost so much of its value within months. In addition, Bitcoin’s longest downward streak lasted between November 2013 when it reached a high of about $1,242 and January 2015 when Bitcoin reached a low of about $192 — an 85 percent drop.

It’s a great read. “Bitcoin vs U.S. Dollar: Cases of Volatility


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