Bitcoin and Ethereum substantially outperformed their previous all-time highs in 2021, reaching 71.8 percent and 456 percent, respectively.
Bitcoin (BTC), the most valuable cryptocurrency by market capitalization, broke over its previous all-time high this year, reaching well over $69,000 on November 10, a 71.8 percent year-over-year increase.
Bitcoin has risen 56.6 percent since its July 21 low of slightly under $30,000. If bitcoin maintains at this level until the end of the year, 2021 will be the fourth-worst year for the cryptocurrency since 2011.
Ethereum (ETH) has increased by 456 percent
Despite a terrible year for bitcoin, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, increased by 456% in 2021.
Ethereum increased steadily throughout the year, reaching an all-time high of $4,182 on May 12 and a second all-time high of $4878 on November 10.
This makes 2021 the second-best year in Ethereum’s five-year history.
Both main cryptocurrencies will outperform the stock market and gold by 2021. During the same period, the Nasdaq and S&P 500 indices generated positive yearly returns of 26.54 percent and 25.82 percent, respectively.
Digital gold vs. physical gold
Interestingly, bitcoin outperformed the genuine yellow metal’s market performance in 2021, which had a negative return on investment of 5.26 percent at the time of writing since proponents frequently refer to the currency as digital gold.
Gold’s market performance has been declining since mid-2020, going from just above $2,070 per ounce in mid-July 2020 to $1812 per ounce, a 12.5 percent loss from its peak.
Gold has performed well over the last five years, gaining 59.7 percent. Over ten years, the market value of gold climbed by 12.5%.
