The Rise of Crypto: How Bitcoin and Ethereum Compare to the Magnificent Seven Stocks
At Extreme Investor Network, we are constantly exploring the intersection of traditional finance and emerging technologies. In this blog post, we dive deep into the comparison between two prominent cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), and the ‘Magnificent Seven’ stocks that have dominated the market in recent years.
The concept of the ‘Magnificent Seven’ stocks, including Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Meta Platforms (META), Amazon.com (AMZN), Nvidia (NVDA), and Tesla (TSLA), has gained traction due to their consistent growth and market dominance. These companies have seen significant returns for investors, contributing to 88% year-to-date returns for shareholders, as highlighted by CoinGecko.
Outperforming the Market: Crypto vs. Stocks
While the Magnificent Seven stocks continue to outperform the broader market, cryptocurrencies like Bitcoin and Ethereum have shown remarkable growth over the past five years. Despite starting with lower market caps in 2019, Bitcoin and Ethereum have seen exponential increases in value.
Comparing the market cap performance of these assets from 2019 to 2024, we see significant growth across the board:
| Asset | 2019 Market Cap | 2024 Market Cap | % Change |
|---|---|---|---|
| Microsoft (MSFT) | $961.84B | $3.322T | 245.40% |
| Apple (AAPL) | $933.37B | $2.230T | 246.10% |
| Nvidia (NVDA) | $105.42B | $3.039T | 2782.80% |
| Alphabet (GOOGL) | $818.42B | $2.258T | 175.90% |
| Amazon (AMZN) | $945.77B | $2.011T | 112.60% |
| Meta Platforms (META) | $541.70B | $1.279T | 136.10% |
| Tesla (TSLA) | $43.80B | $631.08B | 1340.80% |
| Bitcoin (BTC) | $103.98B | $1.250T | 1102.20% |
| Ethereum (ETH) | $18.16B | $421.00B | 2218.30% |
Notably, Nvidia and Tesla have shown exceptional growth, with market cap increases of 2,782.8% and 1,340.8%, respectively. Combined, these companies now have a market cap of $15.770 trillion, marking a 262.5% increase from five years ago.
Nvidia’s Dominance Over Crypto
Nvidia stands out as the only stock in the Magnificent Seven that outperformed both Ethereum and Bitcoin over the five-year period. With a staggering market cap growth from $105.42 billion to $3.039 trillion, Nvidia has solidified its position as a market leader.
As of June 28, 2024, Bitcoin and Ethereum comprise 66.9% of the total crypto market cap of $2.46 trillion, with Bitcoin at $1.250 trillion (49.9%) and Ethereum at $421 billion (17.0%). Ethereum’s market cap saw an impressive 2,218.3% growth, outpacing Bitcoin’s 1,102.2% increase due to its lower initial market cap and later launch.
Diversifying Portfolios: Comparing Market Caps
As of June 28, 2024, the combined market caps of the Magnificent Seven, Bitcoin, and Ethereum total $17.44 trillion, with Bitcoin and Ethereum accounting for 9.6% of this value. Nvidia and Ethereum have achieved the highest market cap growth in the past five years, highlighting the significance of diversification in investment portfolios.
Market Cap Trends and Events
Bitcoin and Ethereum’s market caps have fluctuated due to various market events, such as regulatory developments and industry partnerships. While both cryptocurrencies have seen significant growth, Ethereum’s market cap remains smaller than Bitcoin’s, indicating potential for further expansion.
Conclusion
At Extreme Investor Network, we believe in providing our readers with valuable insights into the evolving financial landscape. By exploring the performance of cryptocurrencies like Bitcoin and Ethereum against traditional stocks, we aim to empower investors to make informed decisions and navigate the rapidly changing investment landscape.
Stay tuned for more updates and analysis from Extreme Investor Network, your trusted source for cutting-edge financial information and expert commentary.