Visualized: Bitcoin Returns vs. Major Asset Classes


This post is by Marcus Lu from Visual Capitalist


See this visualization first on the Voronoi app.

This graphic shows bitcoin's performance compared to other major assets over the last decade

Bitcoin Returns vs. Major Asset Classes

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources. The crypto winter finally came to an end in 2023, as bitcoin soared 156% over the year. Not only did the cryptocurrency outperform all major asset classes, it saw its best year since 2020. Several factors drove prices higher, including anticipation for the launch of 11 bitcoin ETFs, which would make crypto more accessible to a broader investor base. This graphic shows bitcoin returns compared to major asset classes, based on data from iShares.

How Bitcoin Stacks Up

Below, we show annual bitcoin returns, highlighting the outsized volatility compared to assets like stocks, bonds, and commodities:
Asset Returns202320222021
Bitcoin+156%-65%+58%
S&P 500+25%-20%+29%
High Yield Corporate Bonds+12%-11%+5%
Gold+12%+1%-6%
Emerging Markets+9%-18%+0%
Bonds+5%-12%-1%
Commodities-2%+20%+30%
As a risk asset, bitcoin jumped in value given hopes that the Federal Reserve would cut interest rates in 2024. Positive sentiment also increased leading up to the halving event in 2024, which happens every four years. Halving is the process where the reward for mining a bitcoin is halved, which means that miners are awarded 50% lower rewards for verifying transactions. In turn, this reduces the rate of money supply growth, (Read more…)