Return on bitcoin investments exceeded the ROI on shares of major U.S. banks

Long-term positive returns on bitcoin investments are attractive to institutional investors.
If we compare equity investments in major U.S. banks to bitcoin investments over the past five-year horizon, it appears that compared to the ROI on credit institution stocks, the return on bitcoin investments exceeded that average ROI by 549.3%.
In the case of Citigroup securities, for example, the excess ROI was 839.2%, and for Wells Fargo it was 728.35%. In the case of Goldman Sachs, JP Morgan and Bank of America stocks, the excess return on bitcoin investments was 407.5%, 402% and 370% respectively.
It is worth noting that while stock price movements are determined by the financial results of banks, in the case of bitcoin’s price, its valuation reflects its perceived value both at the moment and in terms of the promise of the technology behind this digital asset.
Bitcoin’s ROI success looks especially Impressivewhen you remember that the stocks of these banks are the securities of organizations with a history of several decades while bitcoin has a much shorter history.
Finally, it is worth noting that the players on Wall Street are not uncommon to resort to the implementation of buy-backs programs, that is, when the management of corporations begin to buy on the market part of the shares of the companies managed by them to the balance of these organizations in order to maintain the growth of their value or to prevent their significant decline.
The fact is that, in accordance with the classical notion of the market, bitcoin market is in high enough volatility, reflecting among other things the intentions of participants of this sector of global finance to earn on fluctuations of this asset, the rate range of which is not limited, in contrast to the situation on NYSE, where exchange management often puts restrictions on the amplitude of fluctuations of securities rates.
In addition, on the cryptocurrency market, bitcoin competes to attract the attention of investors with many altcoins, as a result, for example, by the current moment the level of dominance of the cryptocurrency No. 1 has fallen to its lowest value in the last four years (38.2%).
Potentially, the growing interest in altcoins, as well as the reduction of global liquidity could lead to the fact that in September, the price of bitcoin will test below the minimum in June, that is, below $17,600 – as indicated by analysts of the research organization Glassnode. Meanwhile, bitcoin’s long-term return on investment is what will draw institutional investors to it.

Leave a Comment