Bitcoin returns dwarf major bank stocks’ ROI

Compared to traditional investment assets, such as stocks of major banks, Bitcoin returns have had the upper hand in the long term, despite taking a hit from the ongoing crypto winter, with the asset recording significant losses as investors await a potential rally.

Data retrieved from the Finbold ROI tool indicates that Bitcoin’s five-year return on investment has outperformed the stocks of five leading banks at an average of 549.35%.

The flagship cryptocurrency has the highest returns against Citi (NYSE: C) at 839.17% and Wells Fargo (NYSE: WFC), which stands at 728.34%.

Elsewhere, Bitcoin returns against Goldman Sach (NYSE: GS) stand at 407.46%, followed by JPMorgan (NYSE: JPM) at 402.06%. Bank of America (NYSE: BAC) lies in fifth spot among the top five major five banks’ stocks, with Bitcoin returns 369.75% higher.

Short existence

The report aims to put into perspective the performance of Bitcoin over the last five years against leading banks’ stocks, considering their existence varies significantly.

“Bitcoin’s performance can also be considered a surprise since the flagship cryptocurrency is taking on financial institutions that have existed for decades while the asset is a little over a decade old,” according to the research report.

“Not only has it outperformed banks in returns, but Bitcoin has also not faltered in its market capitalisation,” the Finbold report said.

Notably, both Bitcoin and stock market are currently operating in a high inflation environment, with the Federal Reserve implementing tight measures like increasing interest rates. The scenario has partly resulted in the two asset classes recording significant correlation.

However, both assets also record a spot in investment portfolios, with investors attracted to Bitcoin’s significant returns in a short period. At the same time, investors include stock holdings in their portfolios for a variety of reasons, including the fact that equities are relatively less volatile.