In the last two and a half years, the return of digital assets has increased 374 times. Commodities have grown 59 times in earnings, and bonds have fallen ten times.
According to Bloomberg Intelligence, in the first decade of 2020, bitcoin and digital assets will continue to surpass commodities, Nasdaq-listed stocks, and even US Treasury bills.
In a tweet revealed on Monday, Bloomberg presents that the Bloomberg Galaxy Crypto Index (BGCI), a weighted index that includes bitcoin and five other digital assets, has returned seven times higher than the traditional assets that got for two years.
The index includes energy (30.43%), grains (22.44%), industrial metals (17.53%), and precious metals (15.62%), among others. The Bloomberg Nasdaq Composite Index, on the other hand, observed a visible improvement in the weighting of the Nasdaq 100 stocks, in which technology stocks played a vital role, registered at 51%, consumer services at 16%, health at 7.7%, and the financial area covering at least 7.4%.
All the highlighted variables got positioned at the same starting point, at the beginning of 2020, so their relative increase rate can be subject to technical comparisons. The superiority that digital assets presented has been pretty particular in the last 29 months, except for little moments between March and May 2020, when the Covid-19 pandemic got revealed.
In April and November 2021, the highest performance peaks of digital currencies took effect, in which the BGCI showed increases of up to 1,300 times compared to January 1, 2020.
Commodities increased 59 times in the period highlighted by the reports, while the 100 companies gathered in the Nasdaq index show a joint evolution of 42 times. In contrast, the Bloomberg index of US treasury bonds is the only one presenting losses of at least ten times its value in early 2020.
Although the current bearish season started in November 2021, that year ended up with bitcoin returns registered at 60%, which increased by two of the performance of traditional currencies.
According to Bloomberg, the evolution of bitcoin returns can display comparisons against a vast list of sectors such as energy, bonds, and the S&P 500; bitcoin even outperforms a vast majority of conventional currencies.
Since the beginning of last year, the price of bitcoin has shown a growing correlation with traditional assets, as reported in this medium. Recently, the correlation of the bitcoin price with the Nasdaq index has increased. While the S&P 500 bitcoin index shows a correlation of 0.52, with Nasdaq, that coupling goes up to 0.82. This situation implies a greater sensitivity of bitcoin to variations in the latter.
Within the downward trend of its price, bitcoin has reached stability after a rebound in purchases. When writing this article, the BTC price was USD 29,738.
By: Jenson Nuñez
