212 S&P 500 Companies Outperformed Bitcoin in Past 12 Months

Source: Adobe / ilolab

Despite a relatively respectable performance for bitcoin (BTC) of around 60% in 2021, stocks of not only tech companies, but also some of the largest banks and retailers in the United States, have outperformed the cryptocurrency. original during the year.

According to data collected from MicroStrategyThe overview of the returns of different assets against BTC, a total of 212 companies out of the 500 that make up the broad S&P 500 index, performed better than bitcoin in 12 months as of Jan.6.

Among the companies were several of the world’s largest technology companies, including Apple, Microsoft, Y Google-owner Alphabet, the data showed. Also, traditional retailers like House deposit Y Costcoand financial institutions, including Bank of America Y JPMorgan, also outperformed BTC.

Of these companies, Alphabet posted the strongest performance against BTC, which gained 46% in bitcoin terms and close to 65% in US dollar terms.

Apple, meanwhile, delivered returns of around 39% in USD and 23% using BTC as a baseline, leading Bloomberg TV host Joe Weisenthal to to call Apple’s performance is “just amazing.”

“It is much larger than Bitcoin and offers higher returns, with smaller drawdowns and smaller swings overall,” he wrote.

Responding to it, however, the Bitcoin proponent and chief strategy officer at the Human rights foundationAlex Gladstein pointed out how different the two assets are, given that Bitcoin is an open network and Apple shares can only be purchased through regulated brokerages with know-your-customer (KYC) controls.

“However, it is a shame that so few people around the world have access to Apple shares,” Gladstein wrote, adding:

“I am very grateful that we have a ~ trillion dollar asset with a similar performance over the past 12 months that anyone can earn regardless of nationality or identity.”

The index also outperforms BTC

And with many individual stocks outperforming BTC in the past 12 months, it is perhaps no surprise that the index as a whole has also fared better than the number one cryptocurrency.

As of January 6, the S&P 500 Index was up 12% against BTC and 27% in US dollars over a 12-month period. This means that even having a common passive index fund, a popular piece in many people’s investment portfolios, would have generated better returns than Bitcoin last year.

Source: MicroStrategy

However, it is important to note that the number of companies that performed better than the original cryptocurrency has grown in the days since December 31 due to a drop in the price of bitcoin since the end of last year.

Meanwhile, a late December report from a digital asset researcher. BitOoda Research showed that the correlation between bitcoin and the S&P 500 over the past 60 days has remained quite high at 17%.

Correlation with the stock market is generally higher for bitcoin than other crypto assets, and ethereum (ETH), binance coin (BNB) and solana (SOL) only see weak correlations of between 1% and 8%, according to the report.

This high correlation between bitcoin and stocks is in line with comments from Bitcoin advocates such as BlockstreamChief Strategy Officer Samson Mow, who earlier this week said that bitcoin in the short term behaves like a risky asset like stocks, although it “does its thing” over longer time horizons.

As of January 6 at 13:57 UTC, the S&P 500 Index has fallen 1.4% since the end of 2021, while bitcoin has fallen 6.6% over the same time period.
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