Bitcoin Outperforms Major Tech Stocks by an Average of 12% – Despite the fact that Bitcoin and the stock market had a rocky start to the year, the cryptocurrency has shown its growing supremacy by outperforming big tech firms.
According to statistics from Finbold’s ROI tool, Bitcoin outpaced the top six tech stocks with an average return on investment (ROI) of 12.24 percent as of February 13, 2022.
The cryptocurrency surpassed Meta (NASDAQ: FB) by 46.74 percent, with electric automobile manufacturer Tesla (NASDAQ: TSLA) coming in second at 18.37 percent. Amazon (NASDAQ: AMZN) was outperformed by 3.78 percent, while Alphabet (NASDAQ: GOOGL) was outperformed by 1.84 percent.
Bitcoin’s ROI was 1.95 percent higher than Microsoft’s (NASDAQ: MSFT). In other news, the top-ranked cryptocurrency ROI came close to matching Apple (NASDAQ: AAPL), beating it by 0.76 percent.
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Bitcoin Outperform Stocks Despite Volatility
The gains could indicate that Bitcoin is on track to maintain its position as one of the best-performing assets in recent months. Bitcoin was the most popular investment product last year, with gains of almost 60%.
Despite the fact that Bitcoin has a higher return on investment than tech stocks, the two investment products have moved in lockstep. The correlation could indicate the influence of interest rates and inflation concerns on stocks and the cryptocurrency market.
It’s worth noting that Bitcoin and tech stocks are two separate asset classes. Bitcoin is a virtual asset, while the corporations are for-profit businesses with physical products and services.
The stock market has continued to look for prospective corrections as volatility has affected both asset groups. The Federal Reserve’s tapering tactics and the upcoming interest hike have the potential to cause a correction.
If Bitcoin can maintain its gains in the coming months, the asset’s status as a maturing investment tool will be solidified. The ongoing entry of institutional investors into the market will further help the maturity.
Also Read: The 5 Most Sustainable Cryptocurrencies for 2022
Tech Companies Investing in Crypto
Tesla, for example, was one of the first organizations to invest in Bitcoin, leading to the asset’s explosive expansion in 2021.
It’s worth noting that, despite regulatory uncertainties in various places throughout the world, Bitcoin continues to generate better returns. However, the asset’s volatility continues to be a major source of concern for its price rise.
According to the statistics, Meta also has the worst returns among the tech stocks, owing to the company’s terrible fourth-quarter results in 2021. As reported by Finbold, FB crashed over 22 percent within 24 hours, resulting in a wipeout of almost $200 billion. The correction was triggered by the results that indicated that the platform users had stagnated.
The tech companies have been making headway into seeking to incorporate digital currencies into their mainstream offering, based on the excellent crypto returns. Microsoft, for example, posted a position for a director of cryptocurrency business. The winning candidate will be in charge of the company’s Web3 development.
At the same time, Apple unveiled a new feature that will allow Apple Pay customers to make Bitcoin (BTC) and other cryptocurrency transactions using the iPhone’s Tap to Pay feature. Users with Coinbase Card, for example, can utilize the Tap to Pay feature to make payments with their crypto holdings.
Meta’s plans to reveal its cryptocurrency project look to be dwindling elsewhere. This comes after the company sold its Diem technology to Silvergate Capital, a cryptocurrency bank based in California. The crypto project was marred by regulatory controversies.