Is The Bitcoin Bottom In? A Look At 10 Years Of Performance

Bitcoin has been in existence for less than two decades but its performance has already cemented it as a formidable force to be reckoned with. Over the years, the digital asset has been able to outperform established asset classes multiple times, especially the bull market part of its cycles. Looking back, bitcoin’s yearly performance has also shown to point toward the bottom of the market. In this report, we take a look at the last decade of the performance of bitcoin.

Ex-Goldman Sachs executive and founder of Real Vision Raoul Pal shared a visual on Twitter that showed the performance of bitcoin compared to other asset classes in the financial market such as the S&P and the Bloomberg Dollar Index, and it showed just how well the Digital asset has performed in just the last decade alone.

The visual which starts from 2013 and follows through to 2022 shows that bitcoin has been able to outperform all the other assets for seven years, emerging at the top for each of those years. On the flip side, in the years where bitcoin did not outperform these asset classes, it happened to be the worst-performing asset for that year.

Examples of these are in 2014, 2018, and now, in 2022, when the digital asset had underperformed by over 50% each time. Each time, the years of underperformance follow years of incredible performance, and then the next year sees the same outperformance again. 

Bitcoin was down -57.51% in the year 2014, but the prior year had grown more than 5,400%. Then the next year in 2015, the cryptocurrency had grown by 36%, topping the list once more. Then for the next three years would continue to outperform the market.

This three years of abundance and then one year of drought is replicated again through to 2017, after which, BTC would be the worst performer in 2018, declining by more than 74%. The next three years – 2019 through 2021, would see bitcoin consistently record high returns. 2022 then follows the same trend, performing worse than the broader market after three years of outperformance.

Bitcoin has already lost more than 70% of its all-time high value which points to the bottom and is at least close for the digital asset. Then taking into account the performance of bitcoin over the years and the trend that looks to have been established already, it points to the bottom being registered already.

If the trend holds, then the years 2023 through 2025 could see BTC outperforming the broader market once more. Additionally, it would put the peak of the next bull market somewhere between 2024-2025 with at least double-digit growth expected for the digital asset through these years.

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