although Bitcoin (BTC) While the price is currently in the red around 30% since it peaked at $69,000 a while ago, the biggest cryptocurrency has actually outperformed the competition outside of the crypto world. Neither the S&P 500 nor gold came close to the return that Bitcoin was able to achieve last year.
Bitcoin is the fastest rising
According to the research agency obscure research The price of Bitcoin has risen by at least 73% in 2021. The S&P 500, an index of the 500 largest US companies, is up at least 28%. In fact, the price of gold, the main competitor to bitcoin, has fallen by 7% over the same period.
It is the third time in a row that the Bitcoin business has outperformed almost any competition. Although the volatility has been quite high and at times the panic in the cryptocurrency markets has been great, it remains a good year for bitcoin.
Inflation is good for Bitcoin
There are, of course, many reasons for rising Bitcoin performance. The main reason, according to Arcane Research, is rising inflation worldwide. The agency states that inflation has caused the price of Bitcoin to rise significantly.
This is of course because people see Bitcoin as an excellent protection against inflation, the so-called Hedge against inflation.
“Most economists did not expect inflation to rise, which was confirmed by one-year consumer inflation expectations. […] With a 73% increase in a hyperinflationary year, Bitcoin proves to be an excellent Hedge against inflation. “
Institutional Flow BTC
Also, the influx of large amounts of institutional funds Bitcoin price Good performance over the past year. It becomes easier for these big investors to get exposed to bitcoin in 2021 with the emergence of new investment products.
The best example of this is of course the first Bitcoin futures The ETF was recently approved by the United States Securities and Exchange Commission (SEC).
Arcane Research states that billions have been added to the market capitalization of Bitcoin through these new investment options.
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