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Bitcoin Dominates 2024, Edges Gold And Major Indices

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If there is one crypto asset that is expected to be a huge success in 2025, it should be Bitcoin. The first cryptocurrency offering has shown remarkable success heading into 2025.

After recording strong numbers in the past few weeks, analysts have high hopes for the possibility of further breakthroughs. In fact, based on the latest research, Bitcoin has outpaced traditional asset classes like gold, further fueling the optimism behind the currency.

The success of the digital currency this year is not surprising, and is due to several favorable market conditions, including the victory of Donald Trump in the recent US elections.

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According to a report from Creative Planning, and from a Twitter/X post by Charlie Bilello, Bitcoin’s performance has dwarfed the results of other asset classes, with gold offering returns of just 26%.

The same data shows that the Nasdaq 100 index rose by 25%, the US large-cap stock index by 24%, the mid-cap stock index by 13%, and convertible bonds by 10%. Although it has shown good numbers, Bitcoin is still a volatile asset with large price fluctuations.

Bitcoin outperforms gold and other US indices

Although Bitcoin has received some criticism and been the subject of regulatory action, it remains the best-performing asset class. Since 2011, Bitcoin has led all other asset classes, except for at least three years where it generated negative returns for its holders. For example, in 2018, Bitcoin returned -73%.

But most of the time, Bitcoin’s performance was consistent, and there were some cases where returns exceeded 1000%. According to the same chart, Bitcoin offered returns of 1,437% in 2011, even outperforming long-term Treasuries by a “modest” 34%.

There have been cases where Bitcoin’s returns have disappointed holders and investors. If we check the asset’s return this year, we will discover that it is lower than last year’s return of 156%. Last year, Bitcoin was also the best performer among the major asset classes, also outperforming gold.

The total cryptocurrency market cap currently stands at $96,620. table: TradingView

Bitcoin is showing its strength, but volatility remains

While most of the past 14 years have seen Bitcoin perform great against other asset classes, its volatility still raises questions. Owning Bitcoin or other cryptocurrencies always involves risks related to erratic price fluctuations and even political announcements.

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The price of Bitcoin has more than doubled since the beginning of 2024 within the $40,000 range. As of press time, Bitcoin is trading between $95,000 and $97,000.

On December 5, Bitcoin reached $100,000 before falling below $100,000 again a day later. Ether has also joined the rally and volatility, with gains of nearly 50% for the year, currently trading in the $3,400 range.

Featured image from Newsbit, chart from TradingView

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