Cryptocurrencies are the best asset class in 2021 ?
BTC rises 100% as S&P 500 gains just 13%
Despite bitcoin’s underperformance in April and May, the oldest cryptocurrency continues to outperform traditional assets such as gold and stocks. Cryptocurrencies are undoubtedly the best performing asset this year, and their gains are attributed to increased adoption by a group of large institutional investors.
- Bitcoin has gained 100% since the beginning of the year, while at the same time the second largest capitalization ether (ETH) is up over 400%.
- No other market asset class guarantees investors such high returns, and that’s for another year in a row.
Bitcoin and cryptocurrencies up thanks to institutional adoption
Institutions are pushing cryptocurrency adoption to new heights. PayPal launched Checkout with Crypto, a new feature that will greatly expand cryptocurrency payments. PayPal customers with cryptocurrency holdings in the United States will be able to pay with their preferred cryptocurrency – bitcoin, litecoin, ether, or bitcoin cash.
Meanwhile, more traditional banks and asset managers have announced plans to expand their cryptocurrency investment offerings. Goldman Sachs, for example, is set to offer bitcoin and other digital assets to clients of its private wealth management group.
Until now, traditional banks have largely avoided BTC believing it to be too speculative and volatile for their clients. However, the recent rise in valuation of the digital asset has sparked increased demand from institutional investors, corporates, and financial technology (FinTech) players, leaving banking titans with less and less room to choose.
While no one can predict whether the current bull market will continue until 2022, it can be said with certainty that the positive developments achieved this year by the cryptocurrency economy as a whole will not disappear anytime soon. Large institutional investors are beginning to see value in the digital asset space. They will continue to invest in transforming the industry, which should help it maintain high and positive returns.
Did you know?
Bitcoin grew by more than 300% in 2020, from a low of $7200 to $29,000. At the same time, the U.S. S&P 500 index also had a very good year (according to traditional analysts) growing 16%. Gold, which had its best 12-month period in 10 years, rose by 25%.