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Bitcoin CAGR

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Price update 16 minutes ago

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Bitcoin CAGR Explained

CAGR (Compound Annual Growth Rate) measures Bitcoin's average yearly growth rate over a specific time period. It smooths out volatility by calculating the rate that would have given you the same final value if the growth had been steady.

The formula for CAGR is:

Formula
\text{CAGR} = \left( \frac{\text{Ending Value}}{\text{Beginning Value}} \right)^{\frac{1}{n}} - 1

Where n is the number of years. For example, if Bitcoin went from $10,000 to $40,000 over 4 years, the CAGR would be 41.4%.

This chart shows Bitcoin's CAGR over 4-year, 5-year and 10-year periods. A declining CAGR suggests slowing growth, while an increasing CAGR indicates accelerating returns.

Disclaimer
Any information found on this page is not to be considered as financial advice. You should do your own research before making any decisions.

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