Recent research from the Bank of America shows that Bitcoin is now the best-performing currency this year, marking a new classification milestone.
The Bank of America (BofA) published the latest “Cross-Asset Winners & Losers” standings today, reflecting the current standings of major assets and their returns in US dollar terms. The research highlighted two interesting details, both of which are notable feats for Bitcoin, the largest cryptocurrency by market cap.
Bitcoin Outperforms Major Traditional Assets
Bitcoin surged to a new all-time high today, following in the lead of the S&P 500 and the global M2 money supply. Specifically, it surged to a peak of $118,839, marking the third consecutive day that BTC has reached unprecedented prices.
Interestingly, this start suggests that the US dollar has depreciated more against Bitcoin than against any other currency globally, making it a better hedge against inflation and devaluation. Rich Dad Poor Dad author Robert Kiyosaki echoes this belief, reiterating on several occasions that it is better to save in Bitcoin than in “fake fiat.”
BofA Classifies Bitcoin as a Currency
As established earlier, BofA classified Bitcoin under the currency section rather than as an asset. Head of research at VanEck, Matthew Sigel, further highlighted this classification in a tweet today.
Notably, this is a step in the right direction for Bitcoin, as many, including BofA, saw it as a bubble. Investment firm Tephra Digital noted that BTC only appeared in the asset bubble charts of BofA’s chief investment strategist, Michael Hartnett.
However, Hartnett classified Bitcoin among the most essential technological disruptions in the last 1,000 years in June. Now, BofA has added Bitcoin to the currency section in its cross-asset report.
Meanwhile, if Bitcoin is placed in the asset section, it would rank as the fourth-best. Gold leads the category with 25.7%, while the Europe Equities and UK Equities stand next with 25.4% and 19.8%, respectively.
Notably, the evolving view of Bitcoin among major financial players highlights its emerging institutional use case. The pioneering cryptocurrency has transcended its nascent reputation of “scams” and “bubbles” to become a mainstream asset.
Currently, Bitcoin ranks among the top six assets globally. Furthermore, many countries and corporate firms now see Bitcoin as a worthy reserve asset. Aside from the United States, Pakistan and Kazakhstan are considering a Bitcoin reserve creation, while firms like Strategy, GameStop, and Metaplanet have adopted BTC as their primary corporate treasury assets.