Although Bitcoin has suffered significant volatility in 2022, the asset returns are higher than traditional investment vehicles. Bitcoin’s dominance over equities has continued with the asset recording significant returns over leading tech stocks.
Data presented by Finbold reveals, that as of February 13, 2022, Bitcoin had outperformed the top six tech stocks by an average return on investment (ROI) of 12.24%.
Among the stocks, Bitcoin significantly outperformed Meta (NASDAQ: FB) by 46.74%, followed by electric vehicle manufacturer Tesla (NASDAQ: TSLA) at 18.37%.
The asset also outperformed Amazon (NASDAQ: AMZN) by 3.78%, followed by Alphabet (NASDAQ: GOOGL) at 1.84%. Compared to Microsoft (NASDAQ: MSFT), Bitcoin ROI was 1.95% higher.
Elsewhere, the number one ranked cryptocurrency ROI almost matched Apple (NASDAQ: AAPL), surpassing the stock by 0.76%.
Bitcoin is on a maturity path
The report highlights the implications of Bitcoin outperforming traditional stocks as the asset moves towards maturity. According to the research report:
“If Bitcoin can sustain the gains in the coming months, the move will solidify the asset’s status as a maturing investment vehicle. The maturity will also be aided by the continued entry of institutional investors into the space.”
Bitcoin has retained a higher ROI compared to the stocks when the two asset classes have demonstrated a higher correlation. The correlation has resulted from the skyrocketing inflation and the expected Federal Reserve’s interest rate hikes.
Furthermore, the short-term returns are a potential indicator that Bitcoin might be on its way to emerge as the best-performing asset. Last year, the crypto had returns of about 60% in a year marked with high institutional investments.
