Stocks have the largest share in the global portfolio with almost 41%, followed by government bonds, which have declined over the years and have been negative in some cases. Bitcoin, on the other hand, is relatively low.
Bitcoin price climbed to an all-time high of about $ 62,000 this weekend, transforming the leading cryptocurrency into a $ 1.1 trillion market cap asset.
Although the crypto asset has grown more than 13 times from March lows, it only accounts for 0.7% of the global multi-asset market portfolio. Even gold makes up 2% of this portfolio on the basis of precious metal held for investment, and this is not all of the gold mined.
Stocks have the biggest share with almost 41%. One of the most followed stock indices, the S&P 500, saw a new ATH with 3,952, up just 5% last week. By contrast, the leading cryptocurrency has surged 95% so far this year.
Expressed in BTC, S&P has dropped 99% over the past five years. Bitcoin is the best performing asset of the last decade, not just this year.
Interestingly, the second largest share in the global multi-wealth market portfolio is government bonds that have declined over the years, with some even falling into the negative territory.
The yield on the benchmark 10-year US Treasury bill had risen above 5% in early 2007. Today it has dropped to 1.625%. The yield on the 30-year Treasury bond has also dropped from around 10% in 1987 to 2.382% now.
Yields below zero in Portugal, Germany, France and the Netherlands
— jeroen blokland (@jsblokland) March 13, 2021
Bitcoin gains are a result of the crypto asset emerging from last year as a hedge against inflation and weaker fiat currencies all over the world; central banks started printing money to combat the impact of the coronavirus epidemic. Richard Byworth, CEO of Diginex Ltd., a Nasdaq-listed digital asset financial services company, said in an interview with Bloomberg:
“What we are seeing is a tremendous monetary incentive against the devaluation of the dollar. And this has a driving effect on Bitcoin, which is experiencing a supply-side crisis due to the halving. ”
Byworth predicts that BTC will reach $ 175,000 by the end of this year as more and more companies, institutions, macro hedge fund managers and others adopt Bitcoin.