The comparison revealed in the report shows that the bear market harmed Bitcoin hard in 2022, making gold a better item for investors to invest in according to its appreciation as a store of value.
A report revealed by the Finbold news outlet highlights that even though many often describe Bitcoin as the replacement for gold, the performance of the precious metal in the first markets was much more valuable than that registered by the digital currency since the beginning of 2022.
Gold Posts Better Gains than Bitcoin so Far in 2022
These figures appeared in a recently revealed report, detailing that the return on investment thrown by Bitcoin this year is 40.4% below that of the gold’s performance in the most prominent markets. The comparison details that in addition to the precious metal, platinum also left the digital currency behind in this index, reflecting juicy gains of 39.4% in the same period.
Among other information, according to numbers launched by CompaniesMarketCap, gold continues to appear as the most prominent investment currency with the highest market capitalization.
Gold has at least USD 11.479 trillion, surpassing entities such as Apple, Amazon, and Google, trading at about USD 1,740 an ounce.
On the other hand, Bitcoin, after the fall in prices, registered a global capitalization of more than USD 415,930 million and appeared with a value of USD 21,700 per unit at the time of publication.
According to the improvements in the price of gold throughout the year, its price crumbled by 3.5% compared to July 7, 2021. Its price was lingering around USD 1,803 per ounce. Its best moment happened at the beginning of March of 2022, just when it approached USD 2,050 amid the concerning situation about the Federal Reserve statements about the US economy.
Bitcoin Price Crash and Crypto Winter
The results presented by Bitcoin get directly linked to the effects of the crypto winter since the drop in its price takes effect at a time when the digital asset market crumbled very strongly.
Although the price of Bitcoin approached high peaks near USD 70,000 in November 2021, from that point, the decadence began, which was especially fed by the crash of the Terra space due to the insolvency situation that damaged the stablecoin UST and the LUNA token.
This event impacted the crypto market in general, leading BTC to go to numbers below USD 20,000 per unit on many occasions and dragging with it a good part of the first altcoins, which lost approximately 70%. of their price concerning its all-time highs.
By: Jenson Nuñez
