Bitcoin’s dominance over the financial space has definitely been impressive. The asset continues to make waves in 2021, even considering the effects of May’s market downturn.
Now, with Bitcoin currently on the rise once more, its performance towards the end of the year has earned it another expected title - the best-performing financial asset of 2021 so far.
Another Year, Another Milestone
As of the time of writing, Bitcoin now trades at $63,318. The asset rose as high as $67,800 last month, bringing it to a new all-time high and banishing the downturn that plagued it - as well as the entire market - for most of the year. Even though the digital asset appears to have cooled down from its high last month, Bitcoin appears to be on a consolidation and could go even higher this month.
But, even without the massive gains that came for most of last month, Bitcoin already notched the title of 2021’s best-performing asset. According to data, the coin’s value marked a gain of 49.1 percent year-to-date as of the early parts of last month. This is thanks in part to the coin’s performance in the third quarter of the year, with Bitcoin seeing a healthy 19 percent gain in the quarter.
Scanning the ranks of the best-performing assets, Bitcoin has a healthy lead over names like commodities (gold, silver, oil, etc.), micro-cap stocks in the United States, and bonds.
Of course, this isn’t the first time that Bitcoin will be the most valuable asset in the world. Speaking with GoBankingRates, James Butterfill, an investment strategist at CoinShares, explained that Bitcoin has been the best-performing asset for seven of the past nine years. He explained:
“As this is an emerging new assets class, reflecting the potential transformation of many industry sectors, particularly finance, it comes as no surprise that it continues to outperform this year, too.”
Things have even gotten better, of course. Bitcoin has crossed $60,000 to start November, and the coin will be looking to find a new high - possibly above $70,000 - before the month runs out.
Even more interesting is the fact that some analysts believe that Bitcoin could see much bigger gains this year. In a recent investor guide, British banking giant Standard Chartered explained that it is looking to see Bitcoin push between $150,000 and $175,000 per coin in the near future. The bank added that this rise should see even bigger gains for some altcoins - especially Ether.
Looking Towards More Gains in 2021
October was definitely the biggest month for Bitcoin in 2021, as far as price gains are concerned. Interestingly, data suggests that stocks could catalyze even bigger gains for Bitcoin going into the end of the year.
The median progress for the S&P 500 index over the past 35 years shows a gain of just over 2 percent, making November the only month where stocks achieve these median returns. Still, stocks have seen positive returns in November for decades, which at least shows optimism for stock investors.
As for Bitcoin, November also has an impressive history. Data shows that the BTC/USD pair has ended higher every November - except for 2018 when it dropped by 36.5 percent, and 2019; when it dropped by 17.2 percent. November 2020 saw Bitcoin jump by a strong 43 percent, so investors will be optimistic about this year.
Stocks Not Doing So Badly
None of this is to say that some individual stocks haven’t performed incredibly well. Tesla’s stock has risen by 60.3 percent this year, thanks in no small part to the company’s ability to make profits for the first time and a recent deal announced with Hertz to put up its vehicles for rentals.
Tesla is now a part of the trillion-dollar club, joining companies like Apple, Amazon, Microsoft, and Alphabet. Elon Musk, the company’s founder, also recently became the richest man in modern history. According to the Bloomberg Billionaire Index, Musk now has a net worth soaring past $300 billion; over $100 billion more than the second-ranked individual, Amazon’s founder Jeff Bezos.
Interestingly, Bitcoin has been part of Tesla’s impressive rise. The company purchased $1.5 billion worth of Bitcoin in February, with the coin’s price hitting $46,500 at the time. According to data from Bitcoin Treasuries, Tesla’s Bitcoin holdings are now valued at $2.738 billion. The company is the second-largest institutional Bitcoin holder, trailing only MicroStrategy.