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Doubling of crypto index this year puts stocks, commodities in the shade.
By Eric Lam, Bloomberg
20 Feb 2021
11:05
Image: Bloomberg
Bitcoinâs market value reached $1 trillion for the first time, a surge thatâs helping cryptocurrency returns far outstrip the performance of more traditional assets like stocks and gold.
The largest digital-asset has added more than $450 billion of value in 2021 to more than $1 trillion, data compiled by Bloomberg show. The Bloomberg Galaxy Crypto Index, which includes Bitcoin and four other coins, has more than doubled.
Speculators, corporate treasurers and institutional investors are thought to have stoked Bitcoinâs volatile ascent. Crypto believers are duelling with skeptics for the dominant narrative around the climb: the former see an asset being embraced for its ability to hedge risks such as inflation, while the latter sense a precarious mania riding atop waves of monetary and fiscal stimulus.