In the decade from 2015 to 2025, the global financial market has gone through a remarkable journey, shaped by a series of macroeconomic events. From the post-financial crisis era of quantitative easing and record-low interest rates, to the drastic tightening cycles aimed at combating inflation, these forces have significantly impacted various assets. During this period, cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) emerged as groundbreaking players, dramatically outpacing traditional assets like stocks, gold, and US Treasuries. These digital assets transitioned from being niche speculative instruments to becoming institutional assets that even made their way onto Wall Street balance sheets.

However, the extraordinary gains in the cryptocurrency market have not come without significant risks, with assets like BTC and ETH experiencing drawdowns of over 75% at times, making recovery periods of several years. Meanwhile, traditional assets have displayed more resilience. In this context, the World Blockchain Association (WBA) has analyzed the performance of the five most prominent assets over the past decade to provide a comprehensive and professional evaluation of how these markets have performed. The goal is to assess whether the remarkable returns in crypto assets came at a fair risk premium or if the potential reward was outweighed by the volatility.

The Comparative Performance of Major Assets: A Look at 2015-2025

Between 2015 and 2025, Bitcoin and Ethereum experienced exponential growth, but so did traditional assets such as the S&P 500 and gold. To better understand the full picture of wealth creation across various asset classes, we conducted a comparative analysis, assuming an initial $10,000 investment in each of these five assets as of August 1, 2015.

Here’s a snapshot of how these assets evolved:

1. Bitcoin (BTC) – Witnessed an astronomical return of 402 times, turning a $10,000 investment into roughly $4.02 million by August 2025.
2. Ethereum (ETH) – Delivered an even more impressive return of 1,195 times, turning $10,000 into around $11.95 million.
3. Gold (GLD) – Gave a more modest return of 3.08 times, equating to about $30,800.
4. S&P 500 – Experienced steady growth, increasing by a factor of 2.97, bringing an investment of $10,000 to $29,700.
5. US Treasuries (TLT) – Had a return of just 1.26 times, meaning a $10,000 investment grew to $12,600.

Understanding the Risks: How Much Risk Was Involved in These Returns?

The risk taken to achieve these returns is an essential aspect of understanding the real performance of each asset. We analyzed the historical volatility, maximum drawdowns, and Sharpe ratios to assess the risk-adjusted returns of these five assets.

• Bitcoin and Ethereum experienced the highest volatility, with Bitcoin’s annualized standard deviation between 70%-90% and Ethereum’s following closely behind. These extreme fluctuations explain why these assets also experienced major drawdowns—Bitcoin, for example, fell more than 80% during the 2018 bear market.
• S&P 500 exhibited much lower volatility, maintaining a steady growth trajectory over the years with a peak-to-trough drawdown of around -34% during the 2020 COVID-19 crisis.
• Gold displayed relatively low volatility, consistent with its reputation as a safe-haven asset. Its maximum drawdown over the past 15 years was about -29%.
• US Treasuries showed minimal volatility and drawdowns, making them a reliable safe-haven asset, though even they were impacted during the tightening cycle of 2022-2023.

The data clearly shows that while cryptocurrencies delivered mind-blowing returns, they also carried far greater risks. Traditional assets such as the S&P 500, while providing much smaller returns, offered more consistent performance with relatively lower risk.

The Role of Macroeconomic Events: How Did Major Events Impact Asset Performance?

Several major events have shaped the performance of assets over the past decade, and understanding how each asset reacted during these times gives us a deeper insight into their true characteristics.

1. The COVID-19 Crash in March 2020: The global panic triggered by the pandemic caused a massive sell-off in all markets. Bitcoin fell by 50% in a single day, and even gold faced some pressure as investors scrambled for liquidity. The US Treasury bond market was the only asset that held its ground during this “risk-off” period.
2. The Crypto Crisis of 2022: The collapse of TerraUSD and the FTX exchange in 2022 showcased the unique risks in the cryptocurrency market. While Bitcoin and Ethereum saw significant losses, traditional assets like gold, the S&P 500, and US Treasuries remained largely unaffected, underlining the vulnerabilities inherent in the crypto market.
3. The Shift in US Monetary Policy (2022-2025): As the Federal Reserve raised interest rates to combat inflation, the broader market, including Bitcoin, saw corrections. However, the crypto market, particularly Bitcoin, showed greater sensitivity to the Fed’s decisions, and the market’s volatility increased significantly.

Bitcoin and Ethereum: The Growth Kings, but Not Without Risks

Bitcoin and Ethereum have indisputably emerged as the “growth kings” of the past decade. However, this growth came with substantial volatility, demonstrated by frequent drawdowns of over 70%, and in some cases, even over 80%. In contrast, the S&P 500, gold, and US Treasuries, while offering more stable returns, still performed relatively well within their risk parameters.

While these digital assets provided returns that are hard to imagine in traditional financial markets, they also came with their own set of risks that traditional investors may not have been accustomed to, namely extreme price fluctuations and exposure to internal risks within the cryptocurrency ecosystem.

The Role of Diversification: How to Build a Balanced Portfolio

To optimize risk and return, it is essential to diversify across low-correlated assets. Initially, Bitcoin was considered an excellent diversification tool due to its low correlation with traditional financial markets. However, with increasing institutional adoption and the growing connection between Bitcoin and macroeconomic factors, this “independence” has started to erode.

A diversified portfolio today might include:

• BTC and ETH for high-risk, high-reward growth,
• S&P 500 for stable, long-term compounding,
• Gold for risk mitigation during periods of geopolitical or economic uncertainty,
• US Treasuries for liquidity and security.

World Blockchain Association’s Perspective on the Future

The next decade will likely bring even more evolution in the landscape of digital finance, with advancements in Web3, DeFi, and NFTs continuing to reshape the financial ecosystem. The DAO (Decentralized Autonomous Organization) model and the rise of Stablecoins could further impact asset performance, particularly within the cryptocurrency space. As these technologies mature, they may offer new opportunities for investors to optimize their portfolios.

For traditional assets, the Tokenization of real-world assets, such as real estate or equities, may bring greater accessibility and liquidity. The intersection of these innovations with traditional assets will continue to redefine global finance.

About the World Blockchain Association

The World Blockchain Association (WBA) is a global organization dedicated to advancing knowledge, policy dialogue, and innovation in blockchain and digital finance. As a leader in the blockchain and cryptocurrency space, the WBA provides stakeholders with trusted insights at the intersection of technology, regulation, and global economic trends through research, reporting, and thought leadership.

Website: WorldBlockchainAssociation.org
Email: TheWorldBlockchainAssociation@gmail.com