Goldman Sachs Global investment bank recently indicated that so far this year, bitcoin is the best performing asset. The cryptocurrency is also ranked as the asset with a highest risk-adjusted yield, surpassing gold and physical property. The Nasdaq 100.
Bitcoin Overpowers Other Investments on Goldman Chart
According to reports, Goldman Sachs recently revealed that bitcoin is the best performing asset (YTD). Bitcoin Documentation shared on Twitter this week:
Per the latest data from Goldman Sachs, bitcoin is the world’s highest-performing asset this year.
The tweet displays Goldman Sachs’ market performance chart featuring total returns for 25 of the most profitable markets. Also, risk-adjusted returns.
The MSCI is listed at the top of the chart with a total YTD return of 27%, a record. The Emerging Markets Index comes second with 8%, followed by bitcoin with a Sharpe Ratio of 3. The chart by the firm shows the value of bitcoin rising. Currently, BTC is trading at $23,130 as of this writing, an increase of 39% from the previous year.
Many people have used bitcoin as a store of value and inflation hedge. Gold has a total YTD return of 6%, and a Sharpe Ratio of 2 according to the Goldman chart. A higher Sharpe ratio signifies that the investment has provided higher returns for a given amount of risk.
However, Goldman Sachs said in December last year that gold is a better “portfolio diversifier” than bitcoin because it is less susceptible to being affected by tighter financial conditions. Furthermore, analysts at the bank believe gold has formed non-speculative usage cases while one for bitcoin is yet to be found.
Goldman Sachs has been in the crypto space for a long time. The firm officially established its cryptocurrency trading desk in May 2021. In January last year, the investment bank predicted that BTC could reach $100,000. The cryptocurrency is continuing to dominate the market from gold. Last year, Goldman Sachs executed its first OTC crypto transaction and offered the first bitcoin-backed loan. A data service was also launched to help traders analyze crypto markets.
Do you think bitcoin will remain the best performing asset in this year’s economy? Let us know in the comment section.
