Recently, we released a compilation of 10 S&P 500 Stocks That Surpassed Bitcoin in 2024. This article will examine the position of NRG Energy, Inc. (NYSE:NRG) in comparison to other S&P 500 stocks that outperformed Bitcoin this year.
Since the inauguration of U.S. President Donald Trump, Bitcoin’s value has shown significant volatility, hovering around $100,000 since reaching that level in December. Trump’s presidency has sparked increased optimism for Bitcoin, with many anticipating a more favorable regulatory framework for digital currencies. Following the SEC’s approval of the first U.S. spot Bitcoin ETF last year, Bitcoin exceeded the $70,000 target set for 2021, a move that was largely viewed as a pivotal moment for the cryptocurrency, making it more appealing to mainstream investors. This year, Bitcoin’s price has more than doubled, and industry analysts predict it could reach as much as $200,000 in 2025.
In a discussion with CNBC, James Butterfill, head of research at crypto-centric asset management firm CoinShares, mentioned that Bitcoin values in 2025 could range from $80,000 to $150,000. He indicated that, in the long term, it wouldn’t be “unreasonable” to expect Bitcoin to capture about 25% of gold’s market share, increasing from roughly 10% today. Should Butterfill’s estimate of $80,000 come to fruition, it might be attributed to President Trump’s unfulfilled promises regarding pro-crypto initiatives.
Additionally, several hedge fund managers have also sought a stake in Bitcoin. Cathie Wood of ARK Invest remains steadfast in her forecast that Bitcoin could soar to $1.5 million by 2030. Known for her bold tech predictions, she elaborated on this scenario during Ark’s Big Ideas 2025 conference, noting that the likelihood of reaching this staggering value has actually increased. Wood has outlined three potential outcomes: a mid-range prediction of $710,000, a conservative estimate of $300,000, and an optimistic scenario of $1.5 million.
Given these insights, is Bitcoin a sound investment? While Bitcoin and other leading cryptocurrencies have experienced significant value fluctuations, the market lacks the transparency of equities, transactions are irreversible, and consumer protections are minimal or absent. According to Charles Schwab, as long as Bitcoin remains highly volatile and is subject to substantial transaction fees, it seems unlikely to serve as a reliable medium of exchange or a safe store of value. Considering this, it’s reasonable to conclude that stocks generally have lower volatility compared to cryptocurrencies like Bitcoin.
