Bitcoin investment returns have outperformed the market, even surpassing traditional assets like stocks and gold. With an astonishing return of 26,931% over the past 10 years, Bitcoin continues to attract investors seeking high growth.
In 2024, Bitcoin once again outperformed major assets, delivering a return of 129% compared to 32.2% for gold and 28.3% for the S&P 500. This exceptional performance, combined with Bitcoin's recent surge above $100,000 and increasing institutional interest, has many wondering whether Bitcoin can maintain its dominance in the long term.
Short-term performance: Bitcoin leads
For over a year, Bitcoin has outperformed traditional assets. Bitcoin's return of 153.1% is higher than gold's return of 34.8% and the S&P 500's 33.1%. U.S. Treasury bonds have negative returns.
Moreover, in the past three years, Bitcoin's performance has remained strong, but Treasuries have performed better. During that time, Treasuries returned 267.8% for 5-year bonds and 218.0% for 10-year bonds. Bitcoin returned 79.0%.
Long-term performance: Bitcoin remains on top
For over 10 years, Bitcoin has led the market with a return of 26,931.1%. The S&P 500 and gold lagged with returns of 193.3% and 125.8%. But Bitcoin's smaller market cap and higher risk mean it may not suit those looking for stable, low-risk returns. It appeals to investors seeking high growth.
The volatility of Bitcoin and its correlation with traditional assets
Bitcoin's price has fluctuated from a low of $172.15 to a high of over $100,679. Its price changes are much larger than traditional assets. These price fluctuations, often related to Bitcoin's halving events, demonstrate its high-risk, high-reward nature.
Bitcoin's correlation with other assets like the S&P 500 and gold has also changed. Before 2020, Bitcoin showed low correlation with the S&P 500. This indicates that it often operates independently of the stock market.
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