Overview
This analysis evaluates the performance of Bitcoin (^BTC) as a commodity from January 2009 to June 2025, covering key metrics such as returns, volatility, drawdowns, and correlations.
Key Metrics
Investment Returns
- Initial Amount: $1 (January 2009)
- Final Capital: $1.82M (June 2025)
- Total Return: 182,077,841.37%
- Annualized Return: 139.56%
Inflation-Adjusted Returns
| Metric | Value |
|----------------------|-------------|
| US Inflation Rate | 2.56% |
| Adjusted Annualized | 133.58% |
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Risk and Volatility
| Metric | Value |
|-------------------------|-------------|
| Standard Deviation | 180.04% |
| Maximum Drawdown | -81.56% |
| Recovery Time | 19 months |
Sharpe Ratio: 0.77 (reflects high risk-adjusted returns)
Performance Tables
Rolling Returns (Annualized)
| Timeframe | Best Return | Worst Return |
|------------|-------------|--------------|
| 1Y | 238.67% | 41.93% |
| 10Y | 82.38% | 38.08% |
Monthly Returns Distribution
- Positive Months: 63% (125/198)
- Negative Months: 37% (73/198)
FAQs
1. What was Bitcoin’s best annual return?
Bitcoin’s best 1-year return was 238.67%, achieved during bullish market cycles.
2. How long did it take to recover from the worst drawdown?
The maximum drawdown (-81.56%) took 19 months to recover.
3. Is Bitcoin a good inflation hedge?
Yes. Bitcoin’s inflation-adjusted return averaged 133.58%, outperforming traditional assets.
👉 Compare Bitcoin to other commodities
Conclusion
Bitcoin has delivered exceptional returns since 2009 but with high volatility. Investors should weigh its risk-reward profile carefully.
Disclaimer: This analysis is for informational purposes only and not investment advice.
Formatting Notes:
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