Bitcoin’s journey since its inception in 2009 tells a story of resilience and long-term growth. Out of its 15-year history, Bitcoin has experienced only three years of negative returns—2014, 2018, and 2022. This trend underscores its ability to weather market volatility and emerge as a dominant asset class.

Chart displays BTC leading as the most profitable asset class for a second straight year according to post by Charlie Bilello.

In 2024, Bitcoin reaffirmed its position as the best-performing asset, outpacing traditional benchmarks like gold, the Nasdaq 100, and the S&P 500. Despite skepticism in its early days, Bitcoin's consistent ability to deliver positive returns makes it a standout in the investment world.

Highlights from 2024:

• Annual Return: Over 120% gain for Bitcoin, driven by increased institutional adoption and growing global recognition of its utility.
• Comparison to Traditional Assets: Bitcoin outperformed gold, which rose by 17.8%, and the Nasdaq 100, which climbed by 44.7%.
• Global Context: Major developments such as institutional investments, regulatory advancements, and increased accessibility have bolstered Bitcoin’s standing.

Why It Matters:

This performance reflects Bitcoin’s growing maturity as a financial asset and its appeal as a hedge against traditional market volatility. With only three down years in its history, Bitcoin continues to shine as a long-term investment vehicle for those seeking asymmetric returns.

In this chart, we can see a comparison between the current cycle and previous cycles. This is important as we have seen a demographic shift from retail investors to more institutional players (governments, pension funds, companies, ETFs).

As Bitcoin’s adoption continues, 2024 has set the groundwork for another pivotal year in 2025.

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