Bitcoin Outperformed Stocks and Gold Last Year » Crypto Insiders

Although the bitcoin (BTC) While the price is currently about 30% in the red since peaking at $69,000 a while back, the largest cryptocurrency has actually simply outperformed the competition outside the crypto world. Both the S&P 500 index and gold did not come close to the return that bitcoin managed to achieve last year.

Bitcoin fastest riser

According to the research agency Arcane Research Bitcoin’s price has risen at least 73% in 2021. The S&P 500 index, the index of the 500 largest American companies, rose at least 28%. In fact, the price of bitcoin’s major competitor, gold, has fallen by 7% over the same period.

It is the third time in a row that bitcoin has outperformed virtually any competition. Although the volatility was very high and at times the panic in the crypto markets was great, it remains a good year for bitcoin.

Inflation good for bitcoin

There are, of course, many reasons for the bullish performance of bitcoin. The main reason, according to Arcane Research, is soaring inflation around the world. The agency states that inflation has caused the price increases of bitcoin to a fairly large extent.

This is of course because people see bitcoin as an excellent protection against inflation, a so-called inflation hedge.

“Most economists did not see high inflation coming, which was confirmed by 1-year consumer inflation expectations. […] With a 73% increase in a highly inflationary year, bitcoin has proven to be an excellent one inflation hedge.”

Institutional inflow BTC

The influx of large amounts of institutional money has also bitcoin price done pretty well over the past year. It became easier for such large investors to gain exposure to bitcoin in 2021 with the advent of new investment products.

The best example of this is of course the first bitcoin futures ETF recently approved by the US Securities and Exchange Commission (SEC).

Arcane Research states that billions were added to bitcoin’s market cap through these new investment options.

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