The post Bitcoin Price Surge In 2024 Not Enough To Beat Gold’s Risk-Adjusted Returns appeared on BitcoinEthereumNews.com.

Este artículo también está disponible en español. According to Goldman Sachs, Bitcoin (BTC) price appreciation in 2024 failed to compensate for its price volatility risks. Meanwhile, gold’s higher risk-adjusted returns reaffirmed its “safe haven” narrative. Despite The Gains, Bitcoin Fails To Outshine Gold The leading digital asset by reported market cap surged from roughly $42,000 at the beginning of the year to as high as $73,000 in March 2024, recording more than 73% gains. At its current market price of $62,790, BTC is still more than 40% up from its price in January 2024. Related Reading Notably, throughout 2024, Bitcoin has consistently outperformed major equity indices, fixed-income instruments, gold, and crude oil.   However, according to data tracked by Goldman Sachs, despite BTC’s impressive gains, its price performance in absolute terms fails to compensate for its volatility. The analysis by Goldman Sachs puts BTC’s year-to-date (YTD) volatility ratio at just under 2%. In comparison, gold gave a risk-adjusted return of 3%, posting strong 28% gains in absolute terms. For the uninitiated, the volatility ratio measures the return an asset generates for each unit of risk or volatility it carries. A higher ratio indicates that an asset provides better returns relative to the risk taken, while a lower ratio suggests less efficient performance.  The analysis notes that Bitcoin’s volatility ratio was only better than Ethereum’s native ETH token, S&P GSCI Energy Index, and Japan’s TOPIX index among the non-fixed income growth-sensitive investments. Bitcoin’s low volatility ratio compared to gold cements the latter’s claim as a “safe haven asset.” This came under the limelight last week when BTC slumped, and gold surged following Iran’s offensive against Israel. Still A Long Way To Go For Bitcoin Since its inception following the 2008 financial crisis, Bitcoin’s ascent to a trillion-dollar market cap asset has been…

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Filed under: News - @ October 9, 2024 11:21 am