Bitcoin’s record low 4-year CAGR of 14.45% still beats gold and stocks

Insights Bitcoin

Solana and XRP outshine Bitcoin CAGR as digital assets diverge in profit potential.

Bitcoin’s four-year compound annual growth rate (CAGR) has dropped to its lowest point ever, now at 14.45%.

CAGR measures the average annual return an asset generates over a specified period. It is calculated by assessing the return on investment (ROI) between two points and determining the annualized compounded return.

For BTC, a four-year holding period now results in an average yearly return of 14.45% — the lowest on record.

Despite the significant drop, Bitcoin continues to outperform traditional financial assets.

Data from Checkonchain reveals that gold, the S&P 500, Nasdaq, silver, and the US dollar have CAGRs ranging from 4% to 13%, making the top crypto a stronger long-term investment.

However, Bitcoin’s CAGR falls behind several leading digital assets. Solana (SOL) leads the sector with an impressive CAGR of 118%, followed by XRP at 49%. Ethereum (ETH) currently has the lowest CAGR among major cryptocurrencies, at just 8%.