This article is available in Spanish.
If there is one crypto asset that is expected to become big in 2025, it has to be Bitcoin. The premiere crypto has shown remarkable success as it ushers in 2025.
Analysts have recorded solid numbers in recent weeks and are hopeful that further breakthroughs can be made. Based on the latest research, Bitcoin has even surpassed conventional asset classes such as gold, reinforcing the optimism behind the coin.
The digital currency’s success this year is not surprising and can be attributed to several favorable market conditions, including Donald Trump’s victory in the recent US elections.
Related reading
According to a report from Creative Planning and a post on Twitter/X by Charlie Bilello, Bitcoin’s performance paled in comparison to other asset classes, with gold returning just 26%.
The same data shows that the Nasdaq 100 gained 25%, US large caps 24%, midcaps 13% and convertibles 10%. While Bitcoin is putting up decent numbers, it is still a volatile asset with dramatic price swings.
With the exception of Long Duration Treasuries, all major assets 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 Edges Gold and other US indices
Although Bitcoin has received some criticism and been the subject of regulatory action, it remains a top-performing asset class. Since 2011, BTC has led all other asset classes, except for at least three years when it delivered negative returns to holders. For example, in 2018, Bitcoin’s return was -73%.
But most of the time, Bitcoin performed consistently, and there were even some cases where returns exceeded 1,000%. According to the same chart, Bitcoin offered returns of 1,437% in 2011, beating even long-term bonds by a “modest” 34%.
There were cases when Bitcoin returns disappointed holders and investors. If we check the asset’s return this year, we will find that it is lower than last year’s 156% return. Last year, Bitcoin was also the best performer among the major asset classes, also beating gold.
Bitcoin shows strength, but volatility persists
Although Bitcoin has performed tremendously against other asset classes over the past fourteen years, its volatility still raises questions. Owning Bitcoin or other cryptocurrencies always comes with dangers associated with erratic price fluctuations and even policy announcements.
Related reading
Bitcoin’s price has more than doubled within the $40,000 range since the start of 2024. At the time of writing, Bitcoin is trading between $95k and $97k.
Last December 5, the price of Bitcoin reached the $100,000 mark before falling back below $100,000 after one day. Ether also joined the rise and volatility, with a gain of almost 50% for the year, and is currently trading around $3,400.
Featured image from Newsbit, chart from TradingView
