Has Bitcoin Bottomed? A look at 10 years of performance
Bitcoin has been around 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 several times, especially the bull market part of the cycles. Looking back, bitcoin’s annual performance has also been shown to point towards the bottom of the market. In this report, we take a look at the past decade of bitcoin’s performance.
10 year performance for Bitcoin
Ex-Goldman Sachs executive and founder of Real Vision Raoul Pal shared one 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 how well the digital asset has performed in just the last decade alone.
The visual that starts from 2013 and follows until 2022 shows that bitcoin has been able to outperform all the other assets for seven years, coming out on 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. Every time the years of underperformance follow years of incredible performance, and the next year we see the same outperformance again.
Bitcoin was down -57.51% in 2014, but the previous year had grown more than 5,400%. Then the next year in 2015, the cryptocurrency had grown by 36%, topping the list once again. Then the next three years will continue to outperform the market.
BTC performance over the last decade | Source: Twitter
These three years of abundance and then one year of drought are repeated until 2017, after which BTC would be the worst performer in 2018, with a decline of more than 74%. For the next three years – 2019 through 2021, bitcoin would consistently record high returns. 2022 then follows the same trend, underperforming the broader market after three years of better results.
BTC holds gains from Tuesday | Source: BTCUSD on TradingView.com
Does this mean the bottom is in?
Bitcoin has already lost more than 70% of its all-time high value, which points towards the bottom and is at least close for the digital asset. Considering the performance of bitcoin over the years and the trend that seems to have been established already, it points to the fact that the bottom has already been registered.
If the trend holds, the years 2023 through 2025 could see BTC outperform the broader market again. Additionally, it will put the peak of the next bull market somewhere between 2024-2025 with at least double-digit growth expected for the digital asset throughout those years.
