This project compares Bitcoin and gold as safe haven assets over a 10-year period (May 2015 to May 2025). I analyze their cumulative returns, volatility, and performance during market downturns to determine which asset is a better safe haven.
*Bitcoin Prices: Sourced from Blockchain.com API (historical market price data).
*Gold Prices: Sourced from Alpha Vantage API using the GLD ETF (SPDR Gold Shares) as a proxy for gold prices.
*Data was cleaned in Google Sheets and processed in BigQuery to calculate weekly returns.
The plot below shows the cumulative returns of Bitcoin and gold over the 10-year period.
You can also explore an interactive version of this analysis in the Tableau Dashboard.
## **Annualized Volatility**
## - Bitcoin: 0.73 %
## - Gold: 0.14 %
## **Average Return During Bitcoin Downturns (>10% Drop)**
## - Bitcoin: -16.61 %
## - Gold: -0.29 %
*Cumulative Returns: Bitcoin likely outperformed gold significantly, but with higher volatility.
*Volatility: Gold exhibits lower volatility, making it a more stable asset.
*Safe Haven Performance: During Bitcoin downturns, gold typically performs better (e.g., positive or less negative returns), supporting its role as a safe haven.
*Recommendation: Gold appears to be the better safe haven due to its stability and performance during market stress, though Bitcoin may appeal to risk-tolerant investors seeking higher returns.