Despite a relatively respectable return on Bitcoin (BTC) of around 60% in 2021, not only technology companies, but some of America’s largest banks and retailers have surpassed the original cryptocurrency in a year.
According to data collected from the review MicroStrategy on the return on various assets versus BTC, a total of 212 companies out of 500 that make up the broad SP 500 index performed better than Bitcoin in 12 months as of January 6.
The data showed that the companies included some of the largest technology companies in the world, including Apple , Microsoft and Google – owner Alphabet . In addition, traditional retailers such as Home Depot and Costco , and financial institutions including Bank of America and JPMorgan , also surpassed BTC.
Of these companies, Alphabet showed the highest profitability versus BTC, adding 46% in bitcoin terms and almost 65% in dollar terms.
Apple, meanwhile, made a profit of about 39% in USD and 23% on BTC as its baseline, leading Bloomberg TV host Joe Weisental to describe Apple’s performance as simply astounding.
It is much larger than Bitcoin and provides higher returns, with less drawdowns and less fluctuations in general, he wrote.
However, in response to it, a Bitcoin proponent and director of strategy for the Fund human rights Alex Gladstein pointed out how different the two assets are, given that Bitcoin is an open network and Apple stock can only be bought through regulated brokerage firms with knowledge. your customers (KYC) check on the spot.
It’s a shame that so few people around the world can access Apple stock, Gladstein wrote, adding:
I am very grateful that we have a trillion dollar asset with similar indicators over the past 12 months that anyone can get, regardless of their nationality or personality.
The index also outperforms BTC
And since many individual stocks have outperformed BTC in the past 12 months, it should come as no surprise that the index as a whole also fared better than the number one cryptocurrency.
As of January 6, the SP 500 is up 12% against BTC and 27% against USD in 12 months. This means that even having a passive index fund, cfommon, popular in the investment portfolios of many people, would bring in more returns than Bitcoin last year.
It is important to note, however, that the number of companies that performed better than the original cryptocurrency rose in the days after December 31, due to the fall in the price of bitcoin since the end of last year.
Meanwhile, a report from the end of December from a digital asset researcher BitOoda Research showed that the correlation between Bitcoin and the SP 500 has remained fairly high at 17% over the past 60 days.
Correlation with the stock market tends to be higher for bitcoins than for other cryptoassets, with Ethereum (ETH), Binance (BNB) and solana (SOL), where there is only a weak correlation between 1% and 8%, according to the report.
This high correlation between bitcoin and stocks is consistent with comments from bitcoin proponents such as the chief strategy officer Blockstream Samson Moe, who said earlier this week that bitcoin behaves as risky as stocks in the short term, even though it does its job. on longer time horizons.
As of January 6 at 13:57 UTC, the SP 500 is down 1.4% since late 2021, while Bitcoin is down 6.6% over the same time period.
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