Bitcoin’s CAGR Hits All-Time Low at 14.45%
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.
Bitcoin’s Annual Return
- Four-year holding period results in an average yearly return of 14.45%
Bitcoin Outperforms Traditional Financial Assets
Despite the significant drop in CAGR, 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 Bitcoin a stronger long-term investment.
Comparison with Other Digital Assets
Bitcoin’s CAGR falls behind 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%.
