Goldman Sachs has ranked bitcoin as the best performing asset so far this year. The cryptocurrency also tops the global investment bank’s list as the asset with the highest risk-adjusted return, ahead of gold, real estate, the S&P 500 and the Nasdaq 100.
Bitcoin Dwarfs Other Investments on Goldman Chart
Global investment bank Goldman Sachs has reportedly ranked bitcoin as the best performing asset to date (YTD). The Twitter account that documents Bitcoin tweeted earlier this week:
Bitcoin is the best performing asset in the world this year, according to the latest data from Goldman Sachs.
The tweet includes a Goldman Sachs market performance chart showing total returns for the top 25 markets, as well as their risk-adjusted returns to date.
Bitcoin tops the total return list with 27%, followed by the MSCI Emerging Markets Index with 8%. BTC it also tops Goldman Sachs’ risk-adjusted return list, with a Sharpe ratio of 3.1. The bitcoin price has risen since the firm published its chart. At the time of writing, BTC It is trading at $23,130, up more than 39% year to date.
Gold, to which many people have compared bitcoin as a store of value and hedge against inflation, ranked several places below. BTC on the risk-adjusted and total return lists. The metal has a year-to-date total return of 6% and a Sharpe ratio of 2, according to the Goldman chart. A higher Sharpe ratio indicates that the investment has produced higher returns for a given level of risk.
However, Goldman Sachs said in December last year that gold is a better “portfolio diversifier” than BTC as it is likely to be less influenced by tighter financial conditions. Furthermore, the bank’s analysts believe that gold has developed non-speculative use cases, while Bitcoin is still looking for one.
Goldman Sachs has been in the crypto space for several years. The firm formally established a cryptocurrency trading desk in May 2021. In January last year, the investment bank predicted that BTC it could hit $100,000 as the crypto continues to take market share from gold. Last year, Goldman Sachs executed its first OTC cryptocurrency transaction, offered its first bitcoin-backed loan, and launched a data service to help investors analyze crypto markets.
Do you think Bitcoin will continue to be the best performing asset this year? Let us know in the comments section.
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