If there is one crypto asset that is predicted to make it big this 2025, it has to be Bitcoin. The premiere crypto has shown amazing success while using in 2025.
Recording solid numbers in the past few weeks, analysts have high hopes that they can make further advances. In fact, based on the latest research, Bitcoin has surpassed conventional asset classes such as gold, confirming the hope behind the coin.
The success of the digital coin this year is not surprising, due to several favorable conditions in the market, including the victory of Donald Trump in the recent US elections.
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According to a report from Creative Design, and from a post on Twitter/X by Charlie Bilello, Bitcoin's performance was lower than the results of other asset classes, with a gold tender yield of only 26%.
The same data shows that the Nasdaq 100 gained 25%, US large caps 24%, mid caps 13%, and convertible bonds 10%. Although it shows reasonable numbers, Bitcoin is still a volatile asset with dramatic price movements.
With the exception of Long Term Treasuries, all major assets ended 2024 higher with Bitcoin leading the way for the second straight year.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 actions, it remains the best asset class. Since 2011, BTC has led all other asset classes, except for at least three years where it has given holders a negative return. For example, in 2018, Bitcoin yield was -73%.
But most of the time, Bitcoin was a consistent player, and there were even some situations when the return was up to 1,000%. According to the same chart, Bitcoin even offered a return of 1,437% in 2011, even beating long-term treasuries by a “small” 34%.
There were times when the Bitcoin product disappointed the owners and the investors. If we check the return of the asset this year, we will find that it is lower than last year's return of 156%. Last year, Bitcoin was also the main performer among the main asset classes, also beating gold.
Bitcoin is showing strength, but volatility remains
Although most of the past 14 years have seen a good performance of Bitcoin against other asset classes, its volatility still raises questions. Owning Bitcoin or other cryptocurrencies always has risks associated with erratic price movements and even policy announcements.
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The price of Bitcoin has more than doubled since the start of 2024 within the $40k range. As of press time, Bitcoin trades between $95k and $97k.
Last December 5, Bitcoin price hit the $100k mark before dipping below $100k again after one day. Ether also joined the boom and volatility, with a gain of almost 50% for the year, and is currently trading in the $3,400 range.
Featured image from Newsbit, chart from TradingView
