Crypto News- Bitcoin Reigns Supreme: The Top Investment Choice for 2024

Crypto News- 2024’s Top Performer: Bitcoin Outshines All Other Investments

Crypto News-In the first half of 2024, Bitcoin and Ethereum have proven to be the most profitable assets. These cryptocurrencies have outperformed traditional investments like the Nasdaq, S&P 500, oil, gold, the U.S. dollar, and government bonds.

Bitcoin and Ethereum Dominate Asset Classes in 2024

Matrixport’s July 1 post highlighted that as we reach the midway point of 2024 and head into the third quarter, Ethereum and Bitcoin continue to lead the pack among various asset classes.

Matrixport noted that the approval of spot Bitcoin ETFs in January has played a crucial role, removing barriers for asset managers who previously hesitated to include Bitcoin in their portfolios. They emphasized that BTC remains the top-performing asset this year.

Echoing this sentiment, Philippe Meyer from BBVA mentioned during a panel at the Web3 Corporate Innovation Day that they’ve observed significant performance improvements in investment portfolios by incorporating small allocations of digital assets like Bitcoin or Ether.

Bitcoin’s Annual Returns Outperform Major Asset Classes

In its annual Big Ideas report for 2024, Cathie Wood’s ARK Invest analyzed the performance of various major asset classes over different time periods.

The report highlighted that over seven years, Bitcoin has shown annualized returns of 44%, significantly outperforming the average 5.7% return of other major asset classes such as gold, commodities, real estate, bonds, equities, and emerging markets.

Excluding the downturn in 2022, Bitcoin’s performance from 2011 to 2021 was exceptional, delivering annualized returns of 230%, compared to the S&P 500’s 14%.

The report also noted a rising trend in the optimal allocation of Bitcoin within investment portfolios, increasing from 1% in 2017 to just under 5% in 2021. With Bitcoin’s impressive performance in 2023, where it gained over 150% in value, the recommended allocation has now surged to 19.4%.

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