Goldman Sachs ranked bitcoin as the best performing asset so far this year. The cryptocurrency also topped the global investment bank’s list of assets with the highest risk-adjusted returns, beating out gold, real estate, the S&P500, and the Nasdaq 100; the P500 and the Nasdaq 100; and bitcoin was ranked as the best-performing asset so far this year.
Bitcoin outperformed other investments on Goldman’s chart
Global investment bank Goldman Sachs has reportedly ranked bitcoin as the best performing asset since the beginning of the year (YTD). The Twitter account Documenting Bitcoin tweeted earlier this week
Bitcoin is the world’s best performing asset this year, according to the latest data from Goldman Sachs.
The tweet includes a market performance chart from Goldman Sachs showing total returns for the top 25 markets, as well as annual risk-adjusted returns.
Bitcoin is the top total return at 27%, followed by the MSCI Emerging Market Index at 8%. BTCalso tops Goldman Sachs’ list of risk-adjusted returns, with a Sharpe ratio of 3.1. Since the company published its chart, the price of bitcoin has risen. At the time of this writing,.BTCis trading at $23,130, up more than 39% since the beginning of the year.
Gold, which many compare bitcoin to as a store of value and hedge against inflation, ranks a few places belowBTC ranks a few places below on both the total return and risk-adjusted return lists. According to Goldman’s chart, the metal has a year-to-date total return of 6% and a Sharpe ratio of 2. A high Sharpe ratio indicates that the investment has produced a high return for a given risk.
However, Goldman Sachs said last December that gold is a better “portfolio diversifier” thanthan BTCbecause it is less susceptible to monetary tightening, it said,
and is a better “portfolio diversifier” than BTC
. Additionally, the bank’s analysts believe that gold has developed a less speculative use case, whereas bitcoin is still looking for one.
Goldman Sachs has been in the crypto space for several years. The firm officially established its cryptocurrency trading desk in May 2021. Last January, the investment bank predicted thatBTCcould reach $100,000 as crypto continues to take market share from gold. Last year, Goldman Sachs executed the first OTC crypto deal, offered the first bitcoin-backed loan, and launched a data service to help investors analyze the crypto market.
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