Bitcoin (BTC), having closed 2021 with 66.5% features in complete returns, has been the most effective performing asset class for the third yr in a row. Bitcoin outperformed 16 different asset courses together with age-old funding automobiles like gold, commodities, and U.S. treasuries and bonds.
The information, which was highlighted by the founder and CEO of Compound Capital Advisors, Charlie Bilello, confirmed that Bitcoin has carried out spectacularly properly within the final decade.
Bitcoin’s efficiency in opposition to opponents is unmatched
In keeping with the chart, Bitcoin was adopted by commodities, which had a 41.4% return in 2021. US Actual Property Funding Trusts (REITS) clocked in because the third-best performing asset by returns with a return of 40.5%.
Gold, the opposite main inflation hedge asset that Bitcoin continues to be in comparison with, ranked in sixteenth place in complete returns with a unfavorable complete return of 4.1%, solely performing higher than Lengthy Period Treasuries, which recorded a 4.6% return in 2021.
The final three years haven’t been the one years the place Bitcoin dominated different asset courses. Bitcoin has been the most effective performing asset in 9 out of the final 11 years, solely being outperformed by US REITS and U.S. Money in 2014 and 2018 respectively. Nevertheless, on this time-frame, Bitcoin has nonetheless been the most effective performing asset, having amassed a cumulative complete return of over 1 million p.c, and an annualized complete return of 197.2%.
The forecast for Bitcoin in 2022
Whereas Bitcoin didn’t attain the $100,000 goal most analysts predicted for 2021 as a result of persisting market volatility, many market contributors are nonetheless extremely bullish for the benchmark cryptocurrency in 2022.
A number of catalysts are anticipated to push Bitcoin’s worth to new highs this yr. One in all these is the anticipated approval of a Bitcoin spot exchange-traded fund (ETF). The SEC spent final yr suspending selections on and denying a number of Bitcoin spot ETFs, however market contributors anticipate that they’ll not be capable of stall an approval in 2022.
Moreover, there’s excessive anticipation that extra nation-states and institutional traders will undertake Bitcoin this yr. The president of El Salvador, Nayib Bukele, has predicted that this yr two extra international locations will be part of his nation in adopting Bitcoin as authorized tender. This adoption can even drive the value of Bitcoin to $100,000 based on the president’s prediction.
The alarming inflation charge, which is presently at 6.2% within the US, can also be very bullish for Bitcoin based on analysts. From our current report, Antoni Trenchev, the founding father of crypto lending platform, Nexo, predicted that Bitcoin would attain a worth of $100,000 by the center of 2022. For Trenchev, the Fed’s transfer to introduce a charge hike to battle inflation would solely trigger a dip within the inventory market that may drive the value of Bitcoin up.
Disclaimer
The offered content material might embody the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability on your private monetary loss.
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