Bitcoin Fails to Outperform Cocoa in 2024

As an analyst with years of experience in commodity markets, I must admit, this year has been quite unexpected. While Bitcoin has undeniably shown impressive growth, it’s hard to ignore the meteoric rise of cocoa, a humble ingredient in our beloved chocolate.

Even though Bitcoin managed to record impressive gains in 2024, it is not the best-performing commodity of the year. 

According to data provided by MarketWatch, cocoa is up by a whopping 185% this year. 

Due to a decrease in cocoa production in West Africa, the cost of cocoa has skyrocketed because of the scarcity of supply.

Most of the world’s cocoa comes from Ghana, Cameroon, and other African nations. Unfortunately, this year, production has decreased significantly as a result of unfavorable weather conditions and insufficient aid for local cocoa farming communities. To make matters worse, the cacao swollen shoot virus disease (CSSVD) has taken a toll on the crops too.

Following reductions in earlier this year’s earnings, cocoa prices climbed anew during the final three months, with ongoing concerns about supply still prevailing. Just last week, the price of cocoa exceeded $12,000 per ton, achieving another record-breaking peak.

For comparison, Bitcoin is up by 126.05% on the year-to-date basis, currently trading at $95,200.

Among the commodities experiencing significant growth are oranges for juice and natural gas. These have surged by approximately 73% for orange juice and 43% for natural gas.

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2024-12-23 09:25