Markets
Visualized: Bitcoin Returns vs. Major Asset Classes
See this visualization first on the Voronoi app.
Bitcoin Returns vs. Major Asset Classes
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
The crypto winter finally came to an end in 2023, as bitcoin soared 156% over the year.
Not only did the cryptocurrency outperform all major asset classes, it saw its best year since 2020. Several factors drove prices higher, including anticipation for the launch of 11 bitcoin ETFs, which would make crypto more accessible to a broader investor base.
This graphic shows bitcoin returns compared to major asset classes, based on data from iShares.
How Bitcoin Stacks Up
Below, we show annual bitcoin returns, highlighting the outsized volatility compared to assets like stocks, bonds, and commodities:
| Asset Returns | 2023 | 2022 | 2021 |
|---|---|---|---|
| Bitcoin | +156% | -65% | +58% |
| S&P 500 | +25% | -20% | +29% |
| High Yield Corporate Bonds | +12% | -11% | +5% |
| Gold | +12% | +1% | -6% |
| Emerging Markets | +9% | -18% | +0% |
| Bonds | +5% | -12% | -1% |
| Commodities | -2% | +20% | +30% |
As a risk asset, bitcoin jumped in value given hopes that the Federal Reserve would cut interest rates in 2024.
Positive sentiment also increased leading up to the halving event in 2024, which happens every four years. Halving is the process where the reward for mining a bitcoin is halved, which means that miners are awarded 50% lower rewards for verifying transactions. In turn, this reduces the rate of money supply growth, which may cause prices to rise if demand remains elevated.
By comparison, the S&P 500 posted 25% returns in 2023, rising above its historical average of 11.5% while U.S. bonds saw 5% returns.
Bitcoin Returns Over the Last Decade
From a longer perspective, here’s how bitcoin has performed since 2013:
| Year | Bitcoin Performance |
|---|---|
| 2013 | 5,516% |
| 2014 | -58% |
| 2015 | 37% |
| 2016 | 119% |
| 2017 | 1,300% |
| 2018 | -73% |
| 2019 | 92% |
| 2020 | 302% |
| 2021 | 58% |
| 2022 | -65% |
| 2023 | 156% |
On average, it has returned 671% per year, with the strongest returns in 2013 when it skyrocketed over 5,000%—climbing from $13 to $1,100.
Between 2017 and 2019, bitcoin saw another impressive run as prices climbed to $20,000 as it become more well known to the wider public. At the same time, a wave of cryptocurrencies entered the market. Later, in 2021, bitcoin reached all-time highs of $64,899, launching into a $1 trillion asset class.
Whether or not bitcoin continues to rally is anyones guess, but several factors look promising given new regulatory approvals for ETFs, potential monetary easing, and the upcoming halving event in April 2024.
Markets
The European Stock Market: Attractive Valuations Offer Opportunities
On average, the European stock market has valuations that are nearly 50% lower than U.S. valuations. But how can you access the market?
European Stock Market: Attractive Valuations Offer Opportunities
Europe is known for some established brands, from L’Oréal to Louis Vuitton. However, the European stock market offers additional opportunities that may be lesser known.
The above infographic, sponsored by STOXX, outlines why investors may want to consider European stocks.
Attractive Valuations
Compared to most North American and Asian markets, European stocks offer lower or comparable valuations.
| Index | Price-to-Earnings Ratio | Price-to-Book Ratio |
|---|---|---|
| EURO STOXX 50 | 14.9 | 2.2 |
| STOXX Europe 600 | 14.4 | 2 |
| U.S. | 25.9 | 4.7 |
| Canada | 16.1 | 1.8 |
| Japan | 15.4 | 1.6 |
| Asia Pacific ex. China | 17.1 | 1.8 |
Data as of February 29, 2024. See graphic for full index names. Ratios based on trailing 12 month financials. The price to earnings ratio excludes companies with negative earnings.
On average, European valuations are nearly 50% lower than U.S. valuations, potentially offering an affordable entry point for investors.
Research also shows that lower price ratios have historically led to higher long-term returns.
Market Movements Not Closely Connected
Over the last decade, the European stock market had low-to-moderate correlation with North American and Asian equities.
The below chart shows correlations from February 2014 to February 2024. A value closer to zero indicates low correlation, while a value of one would indicate that two regions are moving in perfect unison.
| EURO STOXX 50 | STOXX EUROPE 600 | U.S. | Canada | Japan | Asia Pacific ex. China |
|
|---|---|---|---|---|---|---|
| EURO STOXX 50 | 1.00 | 0.97 | 0.55 | 0.67 | 0.24 | 0.43 |
| STOXX EUROPE 600 | 1.00 | 0.56 | 0.71 | 0.28 | 0.48 | |
| U.S. | 1.00 | 0.73 | 0.12 | 0.25 | ||
| Canada | 1.00 | 0.22 | 0.40 | |||
| Japan | 1.00 | 0.88 | ||||
| Asia Pacific ex. China | 1.00 |
Data is based on daily USD returns.
European equities had relatively independent market movements from North American and Asian markets. One contributing factor could be the differing sector weights in each market. For instance, technology makes up a quarter of the U.S. market, but health care and industrials dominate the broader European market.
Ultimately, European equities can enhance portfolio diversification and have the potential to mitigate risk for investors.
Tracking the Market
For investors interested in European equities, STOXX offers a variety of flagship indices:
| Index | Description | Market Cap |
|---|---|---|
| STOXX Europe 600 | Pan-regional, broad market | €10.5T |
| STOXX Developed Europe | Pan-regional, broad-market | €9.9T |
| STOXX Europe 600 ESG-X | Pan-regional, broad market, sustainability focus | €9.7T |
| STOXX Europe 50 | Pan-regional, blue-chip | €5.1T |
| EURO STOXX 50 | Eurozone, blue-chip | €3.5T |
Data is as of February 29, 2024. Market cap is free float, which represents the shares that are readily available for public trading on stock exchanges.
The EURO STOXX 50 tracks the Eurozone’s biggest and most traded companies. It also underlies one of the world’s largest ranges of ETFs and mutual funds. As of November 2023, there were €27.3 billion in ETFs and €23.5B in mutual fund assets under management tracking the index.
“For the past 25 years, the EURO STOXX 50 has served as an accurate, reliable and tradable representation of the Eurozone equity market.”
— Axel Lomholt, General Manager at STOXX
Partnering with STOXX to Track the European Stock Market
Are you interested in European equities? STOXX can be a valuable partner:
- Comprehensive, liquid and investable ecosystem
- European heritage, global reach
- Highly sophisticated customization capabilities
- Open architecture approach to using data
- Close partnerships with clients
- Part of ISS STOXX and Deutsche Börse Group
With a full suite of indices, STOXX can help you benchmark against the European stock market.
Learn how STOXX’s European indices offer liquid and effective market access.
-
Economy2 days agoEconomic Growth Forecasts for G7 and BRICS Countries in 2024
The IMF has released its economic growth forecasts for 2024. How do the G7 and BRICS countries compare?
-
Markets1 week agoU.S. Debt Interest Payments Reach $1 Trillion
U.S. debt interest payments have surged past the $1 trillion dollar mark, amid high interest rates and an ever-expanding debt burden.
-
United States2 weeks agoRanked: The Largest U.S. Corporations by Number of Employees
We visualized the top U.S. companies by employees, revealing the massive scale of retailers like Walmart, Target, and Home Depot.
-
Markets2 weeks agoThe Top 10 States by Real GDP Growth in 2023
This graphic shows the states with the highest real GDP growth rate in 2023, largely propelled by the oil and gas boom.
-
Markets2 weeks agoRanked: The World’s Top Flight Routes, by Revenue
In this graphic, we show the highest earning flight routes globally as air travel continued to rebound in 2023.
-
Markets2 weeks agoRanked: The Most Valuable Housing Markets in America
The U.S. residential real estate market is worth a staggering $47.5 trillion. Here are the most valuable housing markets in the country.
-
Education1 week agoHow Hard Is It to Get Into an Ivy League School?
-
Technology2 weeks agoRanked: Semiconductor Companies by Industry Revenue Share
-
Markets2 weeks ago
Ranked: The World’s Top Flight Routes, by Revenue
-
Demographics2 weeks agoPopulation Projections: The World’s 6 Largest Countries in 2075
-
Markets2 weeks ago
The Top 10 States by Real GDP Growth in 2023
-
Demographics2 weeks agoThe Smallest Gender Wage Gaps in OECD Countries
-
Economy2 weeks agoWhere U.S. Inflation Hit the Hardest in March 2024
-
Green2 weeks agoTop Countries By Forest Growth Since 2001