Why is Bitcoin Outperforming Tech Stocks?

Paigambar Mohan Raj
Invest in Crypto
Source: Cryptowisser

Despite the fact that Bitcoin and the stock market had a rocky start to the year, the cryptocurrency has shown its growing supremacy by outperforming big tech firms. Bitcoin outperformed the top six tech stocks by an average return on investment (ROI) of 12.24% as of February 13, 2022, as per data from Finbold’s ROI tool.

Bitcoin outperformed Meta (NASDAQ: FB) by 46.74%, followed by electric automobile manufacturer Tesla (NASDAQ: TSLA) by 18.37%. Amazon (NASDAQ: AMZN) was outperformed by 3.78%, while Alphabet (NASDAQ: GOOGL) was outperformed by 1.84%. Bitcoin’s ROI was 1.95 percent higher than Microsoft’s (NASDAQ: MSFT). Also, the top-ranked cryptocurrency came close to matching Apple (NASDAQ: AAPL), beating its ROI  by 0.76 percent.

The gains could indicate that Bitcoin is on track to maintain its position as one of the best-performing assets in recent months. Bitcoin was the most popular investment product last year, with gains of almost 60%. 

Even though Bitcoin has a higher return on investment than tech stocks, the two investment products have moved in lockstep. The correlation could indicate the influence of interest rates and inflation concerns on stocks and the cryptocurrency market.

The stock market has continued to look for prospective corrections as volatility has affected both asset groups. The Federal Reserve’s tapering tactics and the upcoming interest hike have the potential to cause a correction.

Tech Companies Plunge into Bitcoin

Moreover, several attempts have been made by big tech companies to integrate digital currencies into conventional offerings. Tesla was one of the first institutions to invest in Bitcoin, helping to fuel the asset’s explosive ascent in 2021. Tesla also revealed that it will accept Dogecoin (DOGE) as a form of payment for its merchandise. 

Microsoft, on the other hand, posted a position for a director of the cryptocurrency business. The winning candidate will be in charge of the company’s Web3 development. 

At the same time, Apple unveiled a new feature that will allow Apple Pay customers to make Bitcoin (BTC) and other cryptocurrency transactions using the iPhone’s Tap to Pay feature. Users with Coinbase Card, for example, can utilize the Tap to Pay feature to make payments with their crypto holdings.

A point to note is that, over the weekend, Bitcoin’s hash rate hit an all-time high. According to data from Blockchain.com, the overall Bitcoin hash rate increased by 31.7 % to an all-time high of 248.11 EH/s. This shows that Bitcoin is currently more secure than ever before.

Cryptocurrencies have seen widespread adoption in recent times. With Russia on board to accept cryptocurrencies, the digital asset class has seen much attention. The acceptance of crypto has only grown over time, and the results can be seen in the market results as well. In due time we are sure to see a bigger surge in crypto acceptance.