Crypto Volatility vs Stock Market Risk

Bitcoin has endured 80%+ crashes four times since 2011, while the S&P 500's worst decline was 57% in 2008-2009—a stark contrast that skeptics call reckless. Yet crypto bulls point to 10,000%+ returns over a decade, arguing that volatility is the price of asymmetric upside. This volatility outperforms #2 Stock Market Risk by a factor of 2x on average drawdown depth: Bitcoin's 2021 crash hit 53%, versus the S&P 500's average bear market decline of 33%. The data confirms higher risk, but also higher reward potential.