Bitcoin has started the day out well. After falling beneath the $7,000-mark last week, the world’s number one cryptocurrency by market cap has managed to add a further $200 to its overall price. While the currency is still below $7,000, it’s about to break this line once again.
Bitcoin Is Heading for the Stars
At the time of writing, BTC is trading for $6,979. Another $20 or so and we’ll be in a whole new range for the third time over the past month. The currency has suffered greatly at the hands of the coronavirus, but while there is still plenty of room to improve, the asset has managed to retain a certain level of resiliency and strength during this crisis.
Want some additional good news? According to many analysts, bitcoin – despite the present conflicts it’s been experiencing – is still the world’s top performing asset for 2020. Stocks have come and gone; precious metals, such as gold, have also taken dips throughout the year, with one ounce of gold falling from about $1,700 to roughly $1,300. In the end, it’s still bitcoin that comes out on top.
Lead Delphi Digital analyst Kevin Kelly explains in a new report:
There are a handful of asset classes boasting positive returns this year, and crypto is one of them. Bitcoin’s latest rebound pushed its year-to-date return into the black as investors continue to digest countless headlines surrounding monetary and fiscal policy responses to COVID-19. We often remind ourselves to take a step back as arbitrary time horizons can muddy or even mislead investors. However, we’d like to quickly point out that bitcoin’s outperforming just about every major asset class over the last 12 months (+40 percent) despite its most recent +50 percent drawdown. Again, time horizons matter.
While things are looking good for BTC in the long run, the report does mention that a few individual assets have surpassed BTC in its gains, even though general markets haven’t. In addition, should stocks ever incur a massive selloff in the coming months, the report suggests heavy correlation between stocks and crypto, claiming that BTC will likely experience the same.
A Couple Little Slips Here and There
The document says:
There are a few subsets of asset classes that have outperformed BTC, like palladium for example, even though precious metals as a group have not… If stocks sell off, it wouldn’t be the first (or the last) time bitcoin follows suit.
For the most part, bitcoin and crypto in general appears to be enticing a lot more investors and new players to the arena. Many are now seeing bitcoin as an asset to try out as fiat proves to be hit-or-miss over these past few weeks, and exchanges are reporting considerably heavier activity and a surge in new accounts.