The crypto market has been relatively stagnant since Bitcoin reached a new all-time high in March. However, despite this, Bitcoin, Ethereum, and Solana continue to outperform traditional assets such as Gold. According to a recent report by Raoul Pal, Co-Founder of Exponential Age Asset Management (EXPAAM), these three cryptocurrencies have shown impressive annualized returns of 141%, 152%, and 224% respectively. In comparison, the best traditional asset, NDX, only boasts an annualized return of 17%.
Consistent Performance
Over the past 14 years, crypto assets have been the best-performing assets in 11 of those years. The trend seems set to continue this year as well, with Bitcoin, Ethereum, and Solana showing year-to-date gains of over 67%, 66%, and 70% respectively. In contrast, Gold, the best-performing non-crypto asset, has a YTD gain of 13%, demonstrating the superiority of crypto assets in terms of returns.
While the volatility of crypto assets has been a point of criticism, it has also been a key factor in their outperformance. Jurrien Timmer, Director of Global Macro at Fidelity Investments, highlighted Bitcoin’s consistent risk-reward ratio since 2020. Despite its high volatility, Bitcoin has continued to deliver substantial gains, proving that the risk is worth the reward. This trend is also evident in other crypto tokens, such as Solana, which has seen a significant price increase from its lows.
As the crypto market remains in a bull run, Bitcoin, Ethereum, and Solana are expected to see further gains throughout the year. Recent developments, such as the increased demand for Spot Bitcoin ETFs, indicate a positive outlook for the market. Inflows of $886.6 million into these funds on a single day in June show growing investor interest. Additionally, the upcoming launch of Spot Ethereum ETFs in July is expected to fuel a rally for Ethereum and other altcoins, according to analysts like Michael van de Poppe.