New data from River highlights Bitcoin’s volatility over the past five years, showing that the cryptocurrency has seen significantly more 5%, 10%, and 20% dips than both gold and the S&P 500 since 2020. However, despite the frequent drawdowns, Bitcoin’s long-term performance far surpasses both traditional assets, rising from $7,100 in early 2020 to over $110,000 today.
The data visualization reveals that Bitcoin has endured roughly 20 instances of 5% dips, 13 instances of 10% corrections, and 7 instances of 20% drawdowns. In comparison, the S&P 500 and gold have each experienced only a handful of such moves, highlighting the much greater volatility in the digital asset space.
Analysts interpret this volatility as a feature, not a flaw. Bitcoin’s cyclical nature and rapid price recoveries have repeatedly rewarded long-term holders who viewed dips as buying opportunities. While the asset remains prone to sharp swings tied to liquidity conditions, macro headlines, and ETF flows, its long-term trajectory continues to trend upward, driven by institutional adoption, on-chain accumulation, and tightening supply post-halving.
As the chart underscores, Bitcoin’s market behavior contrasts sharply with that of traditional assets. Despite enduring the most drawdowns, it has outperformed every major asset class since 2020, reinforcing its reputation as both a high-volatility and high-reward investment in the modern financial landscape.
