Bitcoin (CRYPTO: BTC) hasn’t been the best of investments this calendar year.
At all.
Since 1 January, the price of the world’s top crypto has tumbled a painful 59%. That compares to a 32% loss posted by the tech-heavy NASDAQ.
The rout has been driven by fast-rising interest rates across the world to combat soaring inflation. And it’s hit almost every crypto, not just BTC. In fact, only three of the top 100 tokens by market cap – stablecoins aside – are in the green year-to-date.
But as far as Bitcoin is concerned, the token just might be the best investment on the market right now.
Is Bitcoin set for massive outperformance?
According to a report by JPMorgan (sourced from The Crypto Basic), Bitcoin is forecast to be the highest projected excess return asset class.
The data (which lists Refinitiv Eikon, Bloomberg Finance and JP Morgan as sources), indicates that Bitcoin has a projected excess return rate of 38.1%.
That beats out the number two asset class, private equity, which has a projected excess return rate of 21%, and number three global equities, with a projected excess return rate of 21%.
In case you’re wondering, the projected excess return rate is a forecast estimate of how much the various asset classes are expected to beat the returns that the market has already priced in.
The report also lists the historic volatility of the different asset classes.
Not surprisingly, Bitcoin has by far the highest volatility rating among them. Meaning investors should be prepared for some big price swings, whether the token is trending higher or lower.
Just don’t tell the CEO
While the JPMorgan analysis may be bullish on Bitcoin, and the firm itself has embraced blockchain technology, CEO Jamie Dimon still isn’t a fan.
Speaking at a US congressional hearing this week, Dimon said (courtesy of Bloomberg), “I’m a major sceptic on crypto tokens, which you call currency, like Bitcoin. They are decentralized Ponzi schemes.”
Ponzi scheme? Top medium-term investment? Both?
Time will tell.
