If there is one crypto asset that is expected to make it big this 2025, it has to be Bitcoin. Premier Crypto has demonstrated remarkable success since it launched in 2025.
Registering solid numbers in the last few weeks, analysts have high hopes that it can make more breakthroughs. In fact, based on the latest research, Bitcoin has outperformed traditional asset classes like gold, fueling the optimism behind the coin.
The digital coin’s success this year has been surprising, thanks to several favorable market conditions, including Donald Trump’s victory in the recent US election.
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According to a report by Creative Planning, and a post by Charlie Bilello on Twitter/X, Bitcoin’s performance dwarfed the results of other asset classes, with gold offering only a 26% return.
The same data shows the Nasdaq 100 up 25%, US large caps up 24%, mid-caps up 13%, and convertible bonds up 10%. Although proving decent numbers, Bitcoin is still a volatile asset with dramatic price swings.
With the exception of long-dated Treasuries, every major asset finished higher in 2024 with Bitcoin leading the way for the second year in a row.https://t.co/l5IYmkf6Ih pic.twitter.com/TyStoT73rp
— Charlie Bilello (@charliebilello) January 1, 2025
Bitcoin Edge Gold and other US indices
Although Bitcoin has received some criticism and has been the subject of regulatory actions, it is a high-performing asset class. Since 2011, BTC has led all asset classes except for at least three years, where it has delivered negative returns to holders. For example, in 2018, Bitcoin yielded -73%.
But most of the time, Bitcoin was a consistent performer, and there were even occasions when the yield was above 1,000%. According to the same chart, Bitcoin also offered a yield of 1,437% in 2011, even beating long-term Treasuries with a “modest” 34%.
There were times when the yield of Bitcoin disappointed its holders and investors. If we check the yield of the asset this year, we will find that it is lower than last year’s 156% return. Last year, Bitcoin was also the top performer among the major asset classes, even beating gold.
Bitcoin shows strength, but volatility remains
Although most of the past 14 years have seen Bitcoin outperform against other asset classes, its volatility still raises questions. Owning Bitcoin or other cryptocurrencies always carries risks related to erratic price changes and even policy announcements.
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Bitcoin’s price has more than doubled since 2024 started within the $40k range. As of press time, Bitcoin trades between $95k and $97k.
Last time on December 5th, Bitcoin price touched the $100k mark and fell below $100k again a day later. Ether also joined in the growth and volatility, with nearly 50% of its gain for the year, and it is currently trading in the $3,400 range.
Featured Image from Newsbit, Chart from TradingView
