Bitcoin (BTC) witnessed a roller coaster ride in 2021 and even though BTC has corrected sharply from its all-time high at $69,000, the digital asset is still up by 60% year-to-date. During the same period, gold has dropped more than 5%.
With inflation soaring in the United States and several other parts of the world, Bitcoin’s outperformance over gold shows that investors may be considering it to be a better hedge against inflation when compared to gold.
During the year, the total crypto market capitalization surged to about $3 trillion, but Bitcoin’s dominance fell from about 70% at the start of the year to 40%. This shows that several altcoins have outperformed Bitcoin by a huge margin.
Crypto market data daily view. Source: Coin360
As cryptocurrencies gain wider adoption,