Robust Bitcoin growth trend outpaces inflation, data reveal diminishing return concerns

Quick Take

The Compound Annual Growth Rate (CAGR) of Bitcoin, a pivotal marker of consistent returns, has been a subject of interest among investors and market analysts alike. Since Aug. 2019, Bitcoin’s CAGR has been estimated at around 25%.

A closer look at the trend reveals a pattern of lower lows, sparking conversations around the potential for diminishing returns. However, while the short-term fluctuations may raise eyebrows, the bigger picture tells a different story.

Since Jan. 2022, Bitcoin’s CAGR has oscillated between 25% and a remarkable 60%, demonstrating robustness in its performance. This, mainly, is noteworthy in the context of the broader economic landscape where Bitcoin has managed to exceed inflation rates. But, the question of sustainability remains potent as Bitcoin continues on its volatile trajectory.

CAGR: (Source: Glassnode)
CAGR: (Source: Glassnode)

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