Crypto—a promising emerging asset class
Performance: A Paradigm Shift in Returns
<div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-116135571»>Cryptocurrencies delivered an extraordinary performance in 2024, showcasing their resilience and growth potential. For instance, Bitcoin surged by 143% year-to-date, far outpacing traditional benchmarks such as the NASDAQ and S&P 500, both up by 28%. Ethereum followed with an impressive 72.5% annual return, reinforcing the narrative that crypto assets are high-yield performers.
In comparison, traditional hedges like gold and crude oil were more subdued, with gold gaining 28.41% and crude oil declining by 3.59%, reflecting their diminished appeal in an inflationary environment.
However, this stellar performance comes at a cost: heightened volatility. Over the past year, Bitcoin exhibited 35.48% annual volatility, significantly higher than the S&P 500 (7.88%) or gold (8.92%). While this represents a narrowing of the volatility gap compared to the past decade, Bitcoin remains 4.5 times more volatile than equities and 4 times more volatile than gold.
Did you Know?
The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors.
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