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How BTC and ETH Met Up Against Tech Giants in 5 Years
In the ever-changing landscape of financial markets, cryptocurrencies AND technology stocks have emerged as formidable contenders for investors’ attention. As the dust settles on a tumultuous five-year period, a pressing question arises: Which has performed better, Encrypt OR actions?
CoinGecko has published a study On July 1, we’ll examine how these financial giants have performed relative to each other over the past five years.
The Rise of the Magnificent Seven
The term “Magnificent Seven” was coined by Bank of America analyst Michael Hartnett in April 2023 to describe seven dominant technology stocks. These stocks include Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOGLE), Meta Platforms (NASDAQ: Metaphysics), Amazon.com (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA) and Tesla (NASDAQ: TSL). Together, they have come to represent a significant portion of U.S. technology. stock market.
As CoinGecko reports, these stocks have shown remarkable growth over the past five years. Their combined market cap has increased from $4.35 trillion in 2019 to a staggering $15.770 trillion by June 2024, an increase of 262.5%.
The meteoric rise of cryptocurrencies
While the Magnificent Seven were flexing their muscles, cryptocurrencies were not sitting idle. Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies by market capitalization, have seen exponential growth over the same period.
Bitcoin’s market cap has risen from $103.98 billion in May 2019 to $1.25 trillion in June 2024, marking a 1,102.2% increase. Meanwhile, Ethereum’s growth has been even more impressive, rising from $18.16 billion to $421 billion, representing a 2,218.3% increase.
Cryptocurrencies vs. Stocks: The Battle of the Titans
Comparing cryptocurrency performances to the Magnificent Seven, some interesting patterns emerge. Surprisingly, Nvidia emerged as the best performer among all assets, with a staggering 2,782.8% increase in market cap over the five-year period.
However, both Bitcoin and Ethereum outperformed most of the Magnificent Seven stocks. Ethereum’s growth closely matched Nvidia’s, while Bitcoin’s performance was comparable to Tesla’s 1,340.8% increase.
Several key events have shaped the trajectory of cryptocurrency and stock markets during this period. For cryptocurrencies, milestones such as PayPal’s cryptocurrency integration in October 2020 have provided significant boosts, according to CoinGecko.
Conversely, constraining events such as Elon Musk’s decision to no longer accept Bitcoin for Tesla purchases and the collapse of major cryptocurrency entities such as Terra and FTX have created temporary setbacks.
The approval of the Securities and Exchange Commission (SEC) Bitcoin ETFs in January 2024 marked a turning point in cryptocurrency adoption. This event led to a divergence in growth between Bitcoin and Ethereum, with both seeing a 50% increase in market capitalization in the months that followed.
Looking forward
As we move forward, the battle between cryptocurrencies and stocks continues to evolve. The impending approval of Ethereum ETF and continued technological advances in both sectors promise to keep this race exciting.
In conclusion, while some individual stocks like Nvidia have outperformed cryptocurrencies, Bitcoin and Ethereum have proven their worth against most of the Magnificent Seven over the past five years. As always, investors should approach both markets with a careful assessment of risk and potential rewards.
Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.