Should the Cryptocurrency Flash Crash Scare Investors Away? Here's 1 Incredible Reason They Should Stick Around.

Core Insights - The recent crypto flash crash saw major cryptocurrencies, including Bitcoin, lose over 10% of their value overnight, with Bitcoin's single-day loss surpassing the entire U.S. stock market's decline during the 1929 crash [1] - Despite the volatility, Bitcoin has demonstrated remarkable historical performance, achieving a return of 125% in 2024, following returns of 157% in 2023, 60% in 2021, 305% in 2020, and 95% in 2019, with the only down year being 2022, where it lost 64% [2][3] - Institutional investors are increasingly viewing Bitcoin as a viable asset for portfolios, moving away from its previous perception as too risky and speculative [4][6] Performance Comparison - Bitcoin has outperformed traditional dollar-denominated assets, with the S&P 500 gaining over 100% since 2020; however, if measured in Bitcoin, the S&P 500 would be down 88% over the past five years [5][6] - Many institutional investors now regard Bitcoin as "digital gold," recognizing its potential as a safe store of value and its ability to outperform the U.S. stock market over the long term [6]