Despite the relative lukewarm movement in the crypto market since Bitcoin rallied new all-time record (ATH) in March, Bitcoin, Ethereum and Solana continued to outpace traditional assets, including gold. This was highlighted in a recent report that showed how crypto assets have been delivering the best returns for some time.
Bitcoin, Ethereum and Solana outperform traditional assets
Raoul Palco-founder of Exponential Age Asset Management (EXPAAM), shared the crypto investment firm’s latest monthly update, which shows the annualized returns of all major assets.
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BitcoinEthereum, and Solana have outperformed traditional assets with annualized returns of 141%, 152% and 224% respectively. For context: NDX, the best major traditional propertyhas an annualized return of 17%.
Thanks to this, these crypto assets are the best performing assets in 11 of the past 14 years. These digital assets look on track to outperform traditional assets again this year, as they post higher year-to-date (YTD) gains. Data from CoinMarketCap shows that Bitcoin, Ethereum, and Solana currently have YTD gains of over 67%, 66%, and 70%, respectively.
On the other hand, Gold, the best performing non-crypto asset this year, has a YTD gain of 13%. The NDX has a YTD gain of 10%, while the SPY has a YTD gain of 11%. Interestingly, while the inconstancy of crypto assets have sometimes been criticized, this has largely contributed to them continuing to outperform traditional assets.
The Director of Global Macro at Fidelity Investments, Jurrien Timmer, rather emphasized how Bitcoin continues to post the best risk-reward value since 2020. He also alluded to Bitcoin’s high volatility, stating that Bitcoin’s massive declines have also brought big gains. The same can also be said about crypto tokens, especially considering that a token like Solana, which fell to $10 at the end of 2022, is now trading above $170.
More gains ahead for BTC, ETH, SOL
Bitcoin, Ethereum and Solana are expected to post more YTD gains as the year progresses, given that the crypto market is currently in a running of the bulls. Recent developments in the crypto market also paint a bullish outlook for these crypto tokens. One of these is the increased demand for the Discover Bitcoin ETFs. Facts from Farside Investors showed that these funds recorded net inflows of $886.6 million on June 4, their best day since March.
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Meanwhile, the Discover Ethereum ETFs are expected to begin trading in July. Crypto analysts like Michael van de Poppe predict that these funds could spark a significant rally for Ethereum and other altcoins. ‘Solana Summer’ also appears to be on the horizon, with the crypto token showing signs of an impending parabolic uptrend.
At the time of writing, Bitcoin has broken above the $70,000 resistance level and is trading around $71,000, up almost 3% in the last 24 hours. facts from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com