Cite This Comparison
"Bitcoin vs Iris Energy (BTC vs IREN): Returns, Risk & Volatility (2025)." Gale Finance, December 31, 2025. https://www.gale.finance/compare/btc-vs-iren-2025 Free to use with attribution. Please link back to this page or gale.finance.
Analysis period: 2025-01-01 to 2025-12-31
Relative Performance of BTC vs IREN (Normalized to 100)
Normalized to 100 at start date for comparison
Key Takeaways
- Total Return: BTC delivered a -8.7% total return, while IREN returned +233.1% over the same period. IREN outperformed on total returns.
- Risk-Adjusted Return (Sharpe Ratio): BTC had a negative Sharpe (-0.11) while IREN was positive (1.71), indicating IREN had meaningfully better risk-adjusted performance in this period.
- Volatility (Annualized): IREN was more volatile, with 97.2% annualized volatility, versus 42.0% for BTC.
- Maximum Drawdown: BTC's maximum drawdown was -32.1%, while IREN experienced a deeper drawdown of -60.2%.
Bitcoin vs Iris Energy Correlation
Bitcoin and Iris Energy were weakly correlated in 2025. With a correlation of 0.08, these assets showed meaningful independence, offering diversification benefits when held together.
For portfolio construction, this weak correlation suggests that combining BTC and IREN could reduce overall portfolio variance. However, correlations can increase during market stress.
| Metric | Metric | Value |
|---|---|---|
| Current (30-day) | 0.28 | |
| Average (full period) | 0.08 | |
| Minimum | -0.25 | |
| Maximum | 0.44 |
Correlation measures how closely two assets move together. Values near +1 indicate strong co-movement, near 0 indicates independence, and negative values indicate inverse movement.
Investment Comparison
If you invested $10,000 in each asset on January 1, 2025:
Difference: $24,178.053 (IREN ahead)
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Bitcoin and Iris Energy: Risk Analysis
Bitcoin experienced its maximum drawdown of -32.1% from 2025-10-07 to 2025-11-23. It has not yet recovered to its previous peak.
Iris Energy experienced its maximum drawdown of -60.2% from 2025-01-24 to 2025-04-08. It has not yet recovered to its previous peak.
Smaller drawdowns and faster recoveries indicate lower downside risk and greater resilience during market stress.
Sharpe Ratio of BTC and IREN
Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. BTC had a negative Sharpe (-0.11) while IREN was positive (1.71), indicating IREN had meaningfully better risk-adjusted performance in this period.
A Sharpe above 1.0 is generally considered good, above 2.0 is excellent. Negative Sharpe means the asset underperformed the risk-free rate. Calculated on each asset's full 365-day lookback of available prices and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).
Sortino Ratio of BTC and IREN
Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only penalizes negative volatility. IREN had better downside-adjusted returns.
A higher Sortino is better. It's particularly useful for assets with asymmetric volatility (big gains, smaller losses). Downside volatility: BTC 29.0% vs IREN 63.0%. Calculated on each asset's full 365-day lookback of available prices and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).
Full Comparison of Bitcoin vs. Iris Energy (2025)
| Metric | BTC | IREN |
|---|---|---|
| Total Return | -8.7% | +233.1% |
| Annualized Volatility | 42.0% | 97.2% |
| Sharpe Ratio | -0.11 | 1.71 |
| Sortino Ratio | -0.16 | 2.63 |
| Max Drawdown | -32.1% | -60.2% |
| Avg Correlation to S&P 500 | N/A | N/A |
Bitcoin vs Iris Energy: Frequently Asked Questions
Which had higher volatility: BTC or IREN?
IREN showed higher volatility at 97.2% annualized, compared to 42.0% for BTC During 2025. Higher volatility meant larger price swings in both directions.
Did BTC provide diversification when held with IREN?
BTC and IREN were weakly correlated in 2025, with an average correlation of 0.08. This weak correlation suggested meaningful diversification benefits when held together.
Which had better risk-adjusted returns: BTC or IREN?
BTC had a negative Sharpe (-0.11) while IREN was positive (1.71) During 2025, indicating IREN had meaningfully better risk-adjusted performance.
Could BTC and IREN have been combined in a portfolio?
Yes, though allocation sizing mattered. Their weak correlation could have meaningfully reduced overall portfolio variance. IREN's higher volatility (97.2%) meant even small allocations can materially impact overall portfolio risk.