Bitcoin (BTC) Outpaces Traditional Assets with Unmatched 10-Year Growth

Bitcoin (BTC) has proven to be a formidable asset over the past decade, achieving an extraordinary growth rate of 26,931.1%, as reported by CoinGecko. This performance has far outstripped traditional asset classes, including stocks, commodities, and bonds, positioning Bitcoin as a high-growth investment option.

Year-to-Date and Short-Term Performance

In 2024, Bitcoin has delivered a year-to-date (YTD) return of 129.0%, surpassing other assets such as gold, which returned 32.2%, and the S&P 500 at 28.3%. Crude oil and US treasuries lagged, with crude oil showing a slight negative return of -0.13%, while 5-year and 10-year treasuries offered modest returns of 5.3% and 8.2%, respectively.

Over a 1-year period, Bitcoin’s returns remained impressive at 153.1%, outpacing gold’s 34.8% and the S&P 500’s 33.1%. This showcases Bitcoin’s resilience and growth potential amid market fluctuations. Treasuries, however, showed negative returns, reflecting their sensitivity to economic conditions.

Medium-Term Investment Insights

Over three years, the performance dynamics shifted, with treasuries leading due to heightened economic stability preferences. Five-year treasuries returned an impressive 267.8%, and 10-year treasuries followed with 218.0%. Bitcoin, despite being outpaced by bonds, still managed a solid 79.0% return, while gold achieved 53.1%.

In a 5-year timeframe, Bitcoin reasserted its dominance with a remarkable 1,283.6% return, underscoring its potential for substantial mid-term gains. The S&P 500 and gold also provided consistent returns of 96.7% and 84.6%, respectively. Treasuries continued to deliver strong returns, with 5-year and 10-year bonds achieving 157.1% and 149.9% respectively, while crude oil remained less compelling at 25.3%.

Decade-Long Dominance

Over a full 10-year period, Bitcoin’s growth stood unrivaled at 26,931.1%, affirming its transformative potential for early investors. Other assets, while offering consistent returns, fell significantly behind, with the S&P 500 at 193.3% and gold at 125.8%. Treasuries maintained their value, with 5-year and 10-year bonds returning 157.1% and 86.8%. Crude oil, however, lagged with a mere 4.3% return.

Volatility and Correlation Analysis

Despite its massive gains, Bitcoin’s journey has been marked by significant volatility, with prices fluctuating between $172.15 and $103,679 over the decade. This volatility underscores Bitcoin’s high-risk, high-reward nature, appealing to growth-focused investors but posing challenges for those seeking stability.

Bitcoin’s relationship with other major assets reveals its unique market behavior. Initially, Bitcoin’s correlation with the S&P 500 was minimal but has strengthened since 2020, aligning more closely during major economic events. Conversely, Bitcoin’s correlation with gold has remained largely inverse, indicating independent movement between these two assets.

For more detailed insights, visit the original analysis on CoinGecko.

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