Crypto Assets Surpass Gold with Astronomical Year-to-Date Gains


In the recent months, despite unfolding with relatively subdued energy within the bounds of the crypto market since Bitcoin hit its remarkable all-time high mark in March, big players in the market such as Bitcoin, Ethereum, and Solana have been consistently surpassing traditional assets, a category which includes esteemed contestant—Gold. The position these cryptocurrency assets hold, achieving the highest returns, was emphasized in a recently-released report.

Putting this into numbers, the Co-Founder of Exponential Age Asset Management (EXPAAM), Raoul Pal, unveiled the investment firm’s fresh monthly update, offering a look at the annualized returns on all of the major assets. It appears that Bitcoin, Ethereum, and Solana are stealing the show from traditional assets. This trio recorded annualized returns of 141%, 152%, and a whopping 224%, respectively. On the contrary, NDX, the frontrunner among traditional assets, can only boast an annualized return of 17%.

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The triple threat of Bitcoin, Ethereum, and Solana seem to have set a winning pattern, crowning themselves as the top-performing assets in 11 of the last 14 years. Moreover, they show a promising trajectory as they gear up to outdo traditional assets in the current year with their impressive year-to-date (YTD) gains. According to data from CoinMarketCap, these crypto assets sport YTD gains of over 67%, 66% and 70%, respectively.

In stark contrast, Gold, the leader among non-crypto asset this year, can only claim a YTD gain of 13%, followed by the NDX and SPY, both trailing close behind with a 10% and an 11% YTD gain respectively. Even though the volatility of crypto assets has come under fire on occasion, it’s this pulsating roller-coaster ride that has significantly contributed to their cumulative edge over traditional assets.

Jurrien Timmer, the Director of Global Macro at Fidelity Investments, has accentuated how Bitcoin, in particular, has been demonstrating the highest risk-reward ratio since 2020. What strikes as a paradox, Bitcoin’s notorious high volatility has led to consequent immense gains, despite substantial downswings. Coins like Solana, for instance, bounced back from a low of $10 in late 2020, and is now trading at a superb high of above $170.

Expectations continue to soar for Bitcoin, Ethereum, and Solana as the current year unfolds, thanks to an active bull market run and several favorable developments stirring within the crypto sphere. This includes an increased demand for Spot Bitcoin ETFs. Notably enough, these funds documented net inflows of an astounding $886.6 million on June 4, marking their most triumphant day since March.

Looking forward, the trading of Spot Ethereum ETFs is projected to commence by July. Projections by crypto experts like Michael van de Poppe suggest this could precipitate a noteworthy rally for Ethereum and its fellow altcoins. The trending ‘Solana Summer’ also seems to be knocking on our doors, with this crypto token setting the stage for a potentially explosive upward trend.

Recent data from CoinMarketCap reveals that Bitcoin has triumphantly rallied past the stiff $70,000 resistance level, currently trading at around $71,000—almost a 3% hike in the last 24 hours. It seems clear that the crypto market, with its dynamic movers and shakers, continues to rewrite the traditional financial playbook as it charts an unpredictable course into the future.