Bitcoin's Four-Year CAGR Plummets to Record Low, Still Outpaces Gold and Stocks

Bitcoin's four-year compound annual growth rate (CAGR) has declined to 14.45%, the lowest rate on record. Despite this slump, the premier cryptocurrency has still outperformed gold and stocks.

Over the past year, Bitcoin (BTC) has experienced significant price action, setting multiple all-time highs (ATHs) despite the US Federal Reserve's (Fed) hawkish stance, which included raising interest rates to curb inflation. Data from CoinGecko shows that BTC has surged 88% over the past year.

However, Bitcoin's four-year CAGR has now fallen to an all-time low of 14.45%. Market analyst Mark Harvey shared a chart on X illustrating the cryptocurrency's declining four-year CAGR. The four-year CAGR represents the average annual growth rate of an asset over four years, accounting for compounding effects, and helps assess long-term performance by smoothing out short-term fluctuations.

Harvey remains optimistic that BTC's CAGR will not stay at this low level for long. He agreed that the cryptocurrency could soon see an explosive upward move.

While Bitcoin's 14.45% four-year CAGR is its lowest on record, it still surpasses the returns of gold and stocks. According to data from Checkonchain, the four-year CAGR for gold, silver, the S&P 500, Nasdaq, and the US dollar has ranged between 4% and 13%.

However, Bitcoin's four-year CAGR pales in comparison to some of the other large-cap cryptocurrencies. For instance, Solana (SOL) offered a CAGR of 118%, while XRP gave 49%. Only Ethereum (ETH) was ranked below BTC with a CAGR of just about 8%.

At the time of writing, Bitcoin commands a total market cap of slightly more than $1.9 trillion, while gold's market cap is almost 10 times greater, around $19 trillion. While there is still a lot of room to grow for Bitcoin, experts opine that it won't be long before the 'digital gold' starts chipping away at gold's dominance.

In a recent client note, analysts at trading