Bitcoin falls behind stocks, gold for the first time in four years

In the Brief:

  • Bitcoin suffers worst year since 2018, down 70% in 2022
  • Stocks and gold also underperform in 2022, with S&P 500 down 20% and Nasdaq Composite down 35%
  • Factors contributing to Bitcoin's underperformance include Federal Reserve rate hikes and crypto firm collapses
  • Bitcoin's underperformance in 2022 marks the first time it has fallen behind stocks and gold since 2018

3 - 5 minute read

For the first time since 2018, Bitcoin has underperformed stocks and gold, with BTC investors down 70% in 2022. This year has proven to be difficult for Bitcoin, with the Federal Reserve hiking interest rates to curb rising inflationary pressures and the collapse of many crypto firms. These factors have caused Bitcoin to drop 65% year-to-date.

Bitcoin monthly returns. Source:

Meanwhile, the U.S. benchmark S&P 500 has plummeted nearly 20% year-to-date, with the tech-heavy Nasdaq Composite down 35%. High-profile losers include Amazon, which has fallen approximately 50% year-to-date, as well as Tesla and Meta, whose stocks have dropped nearly 72.75% and 65%, respectively.

Spot gold is up 0.14% year-to-date, making it a better performer than Bitcoin and the U.S. stock market. However, gold has deviated from its “safe haven” characteristics in the face of a stronger dollar and rising U.S. bond yields, with the precious metal down 22% from its 2022 peak of $2,070.

BTC/USD daily price chart Source: TradingView

Despite this year’s underperformance, Bitcoin is still winning since March 2020. After bottoming out at below $4,000, Bitcoin gained 1,650%, and as of December 28, investors who purchased Bitcoin in March 2020 are sitting on 332% profits. In comparison, the Nasdaq Composite index grew up to 143% after bottoming out in March 2020, giving investors a maximum of 56% paper profits as of December 28. Gold rose a mere 43% during the pandemic era and is now up 26.50%.

BTC/USD weekly price chart. Source: TradingView

It remains to be seen whether Bitcoin will continue to underperform in the coming year, with many investors watching closely to see how it will fare against stocks and gold. Regardless, Bitcoin has shown itself to be a volatile and unpredictable investment, with its performance in any given year difficult to predict.

Disclaimer: The content in this article is provided for informational purposes only and should not be considered as financial or trading advice. We are not financial advisors, and trading carries high risk. Always consult a professional financial advisor before making any investment decisions.

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