Bitcoin’s price has outperformed the S&P 500’s returns by more than threefold in 2024.
Exposure to Bitcoin and Ether, the two largest cryptocurrencies, can significantly enhance the returns of traditional investment portfolios. Philippe Meyer, head of digital and blockchain solutions at BBVA, highlighted that adding a small percentage of Bitcoin or Ether to portfolios can “greatly improve” return on investment (ROI). Speaking at the Web3 Corporate Innovation Day, Meyer noted that a portfolio allocation of 3%–5% in cryptocurrency can significantly boost investor returns, suggesting that anyone seeking better returns should consider this asset class.
Bitcoin’s price has surged by over 146% in the past year, trading above $65,383. In 2024, Bitcoin’s price has outperformed the S&P 500, with Bitcoin rising over 47% year-to-date (YTD), compared to the S&P 500’s 15% rise. This means Bitcoin has outperformed the index by more than threefold. Over a yearly timeframe, Bitcoin is up 147%, while the S&P 500 is up 24%, showcasing a sixfold outperformance. However, Bitcoin has faced short-term challenges, falling 2.3% on the monthly chart, while the S&P 500 rose 2.8% during the same period.
Source: CoinMarketCap
Source: TradingView
Bitcoin’s recent price correction is partly due to slowing inflows from U.S. spot Bitcoin exchange-traded funds (ETFs). The ETFs experienced three days of negative outflows, breaking a 20-day streak of net positive inflows, with over $145 million worth of outflows on June 17. Jag Kooner, head of derivatives at Bitfinex, explained that ETF investors, lacking conviction, tend to magnify market moves, selling below their initial cost basis during market downturns.
source: Farside Investors
