Bitcoin Return in 10 Years VS Stock Market

The comparison between the returns of Bitcoin as well as the stocks has long been a topic of debate. In the past, with extraordinary progress across the market, Bitcoin has remained at the top, beating the stock market. Nonetheless, it has seen a substantial drop recently, igniting the concerns that its bear market may extend further. This article will thoroughly discuss this scenario and the future possibilities in the case of Bitcoin as well as the stock market.

Bitcoin has been effective in providing higher returns to the investors as compared with the stock market during the previous years except for the recent two, as shown by YCharts’ data. Compound Capital Advisors’CEO and founder, Charlie Bilello, referred to data shared by Ycharts yesterday to describe how Bitcoin (BTC) offered remarkable returns to its investors concerning the rest of the asset classes, like the stock market, US dollar, gold, and bonds.

Bitcoin, the Market Driver Notwithstanding Its Volatility

A return of up to 5,507% was obtained by the investors in 2013 on their BTC investment. The total returns, tracking the cumulative gains for the whole 10 years, were 6,271,233% (partially due to the primary crypto token’s low price in terms of the dollar). The impending highest index was elevated by approximately 512.5%. The annualized returns, tracking the profits made on the behalf of the consumers in 1 year, were above ten times as big as that of the Nasdaq 100. Between 2011 and 2012 the annualized returns of Bitcoin were almost 203.5%, while a flat 20% of the profits were returned by the Nasdaq.

During 2014 and 2018, the collapse of Bitcoin was severe and it showed its worst performance in the whole market. A drop of up to 58% was witnessed in the Bitcoin investment in 2014 whereas the respective figure touched nearly 75% in 2018. In 2022, the top cryptocurrency is having an additional bull run. At the denouement of the previous month, the former record of its all-time highs (set in 2017) was broken by it. At the moment, it is priced at nearly $19,300.

On the other hand, US dollar investment jumped by just 0.5% during the previous decade, whereas gold increased by only 2.2%.Commodities gasoline, wood, and petrol were highly unprofitable as they declined by 6.1%. Nonetheless, despite being very volatile, Bitcoin has been undefeated most of the time.

Du Jun Predicts BTC Has to Wait until 2024’s End for a Bull Run

Keeping in view the recent bear market of Bitcoin, Du Jun – Huobi’s co-founder – stated that there are extremely less chances for Bitcoin to witness a bull run ahead of 2024’s denouement or 2025’s start while, according to an indication of the price cycles. He added that the bull markets in the case of Bitcoin are strongly connected with a procedure known as halving, which takes place regularly after some years.

This is linked to the Bitcoin miners, which operate powerful computers to answer the complicated mathematical puzzles for the validation of transfers on the BTC network. The rewards are given to the miners in Bitcoin. The halving is encrypted in the fundamental code of Bitcoin and is responsible for cutting the rewards (provided to the miners for the validation of the transfers on the network)in half after almost every 4 years.

The recent halving phase occurred in 2020 and 2021 when the asset surpassed its all-time high at $68,000. Such a time came in 2016, with BTC reaching its ATH. Following these highs, Bitcoin plunged by 40%. The impending halving is set to be seen in 2024. In Jun’s words, there are a lot of other things like COVID-19 that influence the BTC market thus a precise prediction is improbable. The latest market crash has made the crypto market member more apprehensive about the crypto winter which keeps on prolonging.