How Major Asset Classes Have Performed Since 2020

Over the past five years, global markets have experienced dramatic shifts, shaped by the pandemic, evolving monetary policies, and geopolitical tensions. Here’s an overview of how major asset classes have performed from 2020 through 2024, highlighting both volatility and resilience.

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Bitcoin: Volatility and Growth

Bitcoin has been the most dynamic asset in this period. In 2020, Bitcoin surged 301% as investors sought alternatives amid pandemic uncertainty and low interest rates. The cryptocurrency experienced a sharp 65% drop in 2022 during the so-called "crypto winter," but rebounded strongly with gains of 155% in 2023 and 121% in 2024. This rollercoaster performance underscores both the risk and potential reward for investors in digital assets, with Bitcoin’s risk-adjusted returns (Sharpe ratio) outpacing traditional equities over this period.

Gold: Resilience in Uncertain Times

Gold demonstrated its traditional role as a safe haven, especially in turbulent periods. In 2024, gold prices climbed 26.7%—reaching 40 all-time highs—driven by central bank buying, geopolitical risks, and falling interest rates. Over the five-year span, gold prices rose 93%, from $1,729 to $3,343 per ounce, as investors sought stability amid market swings and inflation concerns.

U.S. Equities: Strength and Setbacks

U.S. equities, represented by the S&P 500, saw significant swings. The index posted strong gains of 28.7% in 2021 and 26.3% in 2023, fueled by fiscal stimulus and technology sector growth. However, 2022 brought an 18.2% decline—the worst since 2008—due to inflation and aggressive rate hikes. The recovery in 2023 and 2024 was robust, but 2025 has started on a rocky note, with the S&P 500 experiencing its fifth-worst start in history over the first 73 trading days, largely due to renewed tariff threats and global uncertainty.

2025 Outlook: Policy and Geopolitics

So far in 2025, asset class performance is being shaped by escalating U.S.-China trade tensions and central bank policy shifts. Gold remains strong, Bitcoin has stabilized after ETF-driven inflows, and U.S. equities are facing volatility. Analysts continue to watch for further geopolitical developments and policy changes that could influence asset returns in the months ahead.

Disclosure

This article is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. All information is based on publicly available sources and believed to be accurate at the time of publication. Readers should consult a qualified financial advisor before making investment decisions. The author and publisher do not hold positions in the securities mentioned.

Sources

https://bilello.blog/2025/2024-the-year-in-charts
https://www.statmuse.com/money/ask/bitcoin-annual-return-for-each-year-and-price
https://www.fidelitydigitalassets.com/research-and-insights/closer-look-bitcoins-volatility
https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-full-year-2024
https://www.visualcapitalist.com/major-asset-class-returns-in-2024/
https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp
https://www.macrotrends.net/2526/sp-500-historical-annual-returns
https://www.jpmorgan.com/insights/global-research/commodities/gold-prices
https://www.visualcapitalist.com/this-year-is-the-5th-worst-start-to-a-year-in-sp-500-history/

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