Bitcoin rallied from $3,800 to $10,000 in two months of volatile trading.
The maligned cryptocurrency outperformed its hedging rival Gold on a year-to-date timeframe.
Gold underperforms as its correlation with the S&P 500 index grows to an 18-month high.
Last week, bitcoin closed above $10,000 almost two months after crashing to below $4,000 in a global market sell-off.
The cryptocurrency found its jumping shoes in a multitude of bullish narratives, ranging from deflation-friendly “halving” to the Federal Reserve’s open-ended stimulus program. The upside performance even led Paul Toden Jones, a legendary hedge fund manager, to add Bitcoin in his $22 billion-portfolio.
The Tudor Investments Corp head called the cryptocurrency “a great speculation” asset against fiat-induced inflation. Meanwhile, he admitted that he holds a substantially higher amount of Gold, calling it a more reliable inflation hedge than Bitcoin.
“I’m going to keep a tiny percent of my assets in [bitcoin] and that’s it,” Mr. Tudor Jones told CNBC. “It has not stood the test of time, for instance, the way gold has.”
Nevertheless, the yellow metal, like bitcoin, behaved more as a risk-on asset than a hedging alternative in the aftermath of Coronavirus-induced market crash. In the same month bitcoin lost 50 percent of its market capitalization, Gold fell by 14.79 percent – a substantial drop for a traditional safe-haven. They both recovered in tandem, as well.
A Risk-on Gold
Joseph Zhang of Fidelity International further noted that Gold rose more in sync with the U.S. equities. The client solutions investment director told Barrons that the correlation between the yellow metal and the S&P 500 increased to an 18-month high following the March sell-off.
Correlation between Gold and S&P 500 grew against the coronavirus backdrop | Source: TradingView.com
Meanwhile, Mr. Zhang added that the positive correlation meant that Gold offered “lower diversification benefits” in a multi-asset portfolio. Investors, instead, shifted their safe-haven calls to the U.S. dollar for the near-term.
At the same time, retail demand for Bitcoin Futures surged to a record high on the Chicago Mercantile Exchange. Crypto data aggregator Glassnode noted a dramatic rise in the number of bullish retail traders. Even spot exchanges, including the U.S. exchange Coinbase, reported higher trading activity in April-May timeframe.
Bitcoin reported higher retail demand post-March crash | Source: Glassnode
As stated, both day traders and long-term investors entered the bitcoin market in anticipation of “halving,” a technical upgrade that on May 11 afternoon cut the cryptocurrency’s daily supply rate from 1,800 BTC to 900 BTC. That allowed Bitcoin to rise by up to 117 percent from its March lows.
In comparison, Gold recovered by a mere 20.41 percent.
Bitcoin a Better Hedge?
Mr. Zhang held a positive view of Gold’s longer-term outlook, stating that the metal forms a positive correlation with the U.S. stocks during economic slowdowns. It happened in the 2007-08 financial crisis, 2011-12 euro debt crisis, and a period of rising bond yields in 2018.
A positive Gold outlook paved a similar upside path for Bitcoin, an asset that claims to the yellow metal’s digital version. So far, the cryptocurrency has exceeded Gold in its stimulus-led recovery, which makes it an ideal addition in a multi-asset portfolio.
At least Mr. Tudor Jones verifies it. origin »
The price of gold rallied above $1,500 on Thursday, as dismal U. S. data reasserted fears about the world’s largest economy heading for a soft landing. Futures on December gold delivery peaked at $1,505.
The price of gold rallied on Wednesday and was making a fast return to $1,500 as investors weighed the multitude of risks facing the U. S. economy. The latest warning signal came from the housing market after existing home sales tumbled much more than expected in September.
Bitcoin is lauded as an “uncorrelated asset” in terms of how it performs compared to popular stock indices like the S&P 500 and other traditional financial markets. Recently, Bitcoin had shown some correlation with gold, strengthening the safe haven narrative that has been at the forefront of 2019.
The price of gold reversed losses Tuesday afternoon, as investors cut ties to riskier assets over concerns that upcoming U. S. -China trade talks will see limited progress. Gold Regains $1,500/Oz December gold futures, the most actively traded derivatives contract, traded as low as $1,492.
The price of gold tumbled on Monday and threatened to slip below $1,500 an ounce after the precious metal became more expensive for holders of foreign currencies. Under normal circumstances, dollar-denominated gold and other precious metals tend to fall when the greenback strengthens.
The price of gold rallied Wednesday, extending its recovery to two days after stocks plunged over dismal economic data. Gold Rallies; Silver Follows Bullion shot above $1,500 a troy ounce, reaching a high of $1,511.
The price of gold rose along with the dollar on Friday after the Trump administration announced harsher sanctions on Iran over its alleged role in the attacks on Saudi oil facilities last weekend.
The price of gold declined on Thursday, snapping a three-day winning streak after central banks around the world provided a muddied outlook on monetary policy. Gold Slides; Silver Follows The yellow metal fell by as much as 1.
After a sharp rally at the start of the week, the price of gold drifted lower on Tuesday, as risk-off traders shifted their focus to an upcoming meeting of the Federal Reserve. Gold, Silver Drift Lower Precious metals were down across the board, giving back some of Monday’s blistering gains.
Bitcoin’s strong and stable performances in 2019 have been undeniable. As the cryptocurrency’s returns continue to outperform gains seen in traditional market stalwarts (i. e. gold, silver, and the S&P 500), many traders are making comparisons to its relative strength within the market.
This Friday the 13th, there is nothing that is spooking investors. This week several market events unfolded that has the S&P 500 and Dow Jones Industrial Average both coming close to touching the record highs.
Following the recent Binance DEX listing, Paycent performs a huge 45 days $ 1,000,000 giveaway, PYN traders and holders have a chance to win $ 350,000 Bentley Bentayga, 1 KG gold bar, 5 Rolex Cosmograph Daytona, and 500 more tangible prizes Singapore, September 3rd, 2019: Paycent, the first crypto fiat debit card and hybrid wallet […]
The post Paycent Gears Up For the Biggest Trading Contest in the History of Crypto: Live September 3-rd on Binance DEX appeared first on NullTX.
The bitcoin price is trading mostly flat today despite the fact that the stock market got hammered, with the Dow Jones tumbling some 400 points. Meanwhile, the gold price is looking bullish and is currently trading above $1,500 per ounce.
As volatility ravages the stock market, it is no surprise that demand for safe-haven assets is soaring. The controversial godfather of defensive assets, gold, has outperformed the S&P 500 year-to-date, and it’s undoubtedly no coincidence.
Dow Jones futures were paralyzed in early trading Tuesday as major warning signs flashed across the broader stock market. The market is in the bizarre position where all asset classes are firing on full power.
Bitcoin [BTC], the king of all cryptocurrencies, continued its bull run with 55. 80% in market dominance. The digital gold coin was priced at $8,546. 52. As BTC crossed the $8,500 mark, it added value to most altcoins, recording noteworthy increases.
Bitcoin [BTC], the largest cryptocurrency in the market, seems to be holding its position above the $8,500 mark pretty well. The bull rally started by the largest cryptocurrency was carried forward by other cryptocurrencies as well, with several rising by double digits over the past seven days.
By CCN: The bitcoin bull market is here, as the price of the flagship cryptocurrency has shot through $7,400 and it seems all set to go higher. Bitcoin bulls estimate that the price of each coin could hit $20,000 very soon thanks to rising demand.
After US President Donald Trump’s threat to impose new tariffs on Chinese exports, global stock markets took a fall. On Wednesday, Dow Jones ended down 1. 8%, S&P 500 fell for the fourth session, closing 1.
By CCN: Barry Silbert, who is at the helm of Grayscale Investments, is taking his firm’s ‘Drop Gold’ campaign to Wall Street, or at least to Midtown. Grayscale’s Silbert was a featured guest on Fox Business’ “Mornings with Maria” program featuring host Maria Bartiromo, who prior to joining Fox Business rose to fame at CNBC.
Bitcoin (BTC) soar, add 13. 3 percent in the last week. Lisk founder says Bitcoin is a secure investment next to Gold After a stellar performance, analysts believe last year’s crypto winter is over as Bitcoin (BTC) prices bottom up, retesting $6,000.
Delphi Digital has returned with another installment of its unspent transaction output (UTXO) reports. Recalling its report from January of this year, the research firm says bitcoin’s market cycle is right on track.
Bitcoin has blindsided bankers and brokers alike, due to its ability to bring substantial and unheard of returns on investments made in the new, emerging financial technology. It’s been compared to a number of other financial assets, including tech stocks, and has been positioned as the digital version of gold.
It’s safe to say that Bitcoin (BTC) is having a good start in 2019. The cryptocurrency gained around 40 percent of its value since the beginning of the year. Interestingly enough, it is now outpeforming NASDAQ, the S&P 500 as well as most commodities including gold and oil.
Since bitcoin’s epic rally in April, the cryptocurrency has recaptured its position as one of the best-performing assets in year-to-date yield. Currently, BTC is outperforming mainstream tradable assets—including the Nasdaq, S&P 500, real estate, oil, and gold.
Bitcoin was subjected to a lot of pushback since its inception, with the Federal Reserve chair Janet Yellen calling Bitcoin a “highly speculative asset”. There were institutional players who perceived Bitcoin to be nothing more than a bubble, speculating its price to eventually fall to zero.
By CCN. com: Year-to-date, the bitcoin price has increased by 44 percent against the U. S. dollar from $3,700 to $5,320, becoming one of the best-performing assets in the global market alongside oil.
Bitcoin fund Adamant Capital is convinced that the bottom of the bear market is in, and true to its name, the firm has laid out an unwavering case for this position with some persuasive hard data and fundamental analysis.
The last year might not have been very great for Bitcoin, but 2019 looks all glam for the top crypto. According to a recent tweet by one Charlie Bilello, Bitcoin is now doing even better than the stock market.
Since January 1, according to OnChainFX, the bitcoin price is up 37 percent year-to-date against the U. S. dollar, outperforming most indices including the S&P 500 and the Nasdaq 100. 2019 Returns…Oil $USO: +38%Bitcoin $BTC: +35%Nasdaq 100 $QQQ: +21%REITs $VNQ: +19%MLPs $AMLP: +18%Small Caps $IWM: +18%S&P 500 $SPY: +17%EM $EEM: +14%EAFE $EFA: +13%Commodities $DBC: +13%High Yield $HYG: +9%Investment Grade $LQD: +6%Bonds $AGG: +2%Gold $GLD: +0.
Warren Buffett, one of the richest man in the world worth $85 billion, has taken yet another shot at gold and implicitly bitcoin in a letter to investors published this...
The post Warren Buffett Disses $4,200 Worth of Gold, but Berkshire Hathaway Underperformed S&P 500 for Past Decade appeared first on Trustnodes.
Bitcoin Could Be Valued At $1.5 Million USD Per Coin If It Absorbs All Fiat And Gold Holdings When Satoshi Nakamoto created Bitcoin, he was interested in creating a solution for the financial world that would take all far away from traditional finance companies and Wall Street and closer to having more freedom to own […]
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Our mission is to create a one-stop platform providing a holistic blockchain experience to any developer or crypto trader.
It ‘Makes Perfect Sense' for SEC to Take its Time to Consider Bitcoin ETF, According to BitWise, Just Look at how Long it Took Gold! Hollywood became a veritable hub for financial professionals including investment professionals from all across the world: 2,500 of them in total over the course of this week. The purpose? To […]
2,500 of the world’s foremost investment professional descended on Hollywood this week to talk exchange-traded funds (ETFs). While much of the discussion between the who’s who on Wall Street was centered around traditional vehicles, talk surrounding Bitcoin (BTC) and cryptocurrency products came to light.
Replacing just 1 percent of one’s portfolio with Bitcoin lets investors outperform the S&P 500, gold and US Treasury bonds, new data released February 8 claims. Bitcoin Beats S&P ‘Every Year’ Compiled by Twitter-based economics analyst known as planB, the visual data simulates portfolio performance with varying degrees of Bitcoin involvement.
Bitcoin is edging closer and closer back to the critical $3,500 support level that some estimated it would stand on for awhile. Ethereum gained a dollar overnight. But more notably, so did Litecoin — more than a dollar, actually.
Bitcoin has fared poorly as a store of value asset in the past decade, according to John Normand. The head of JPMorgan’s cross-asset management unit told Bloomberg that gold was a better hedge than Bitcoin since July 2010.
Bitcoin’s crash has turned the investors from the leading cryptocurrency to gold according to Jan Van Eck, CEO of Van Eck Associates. Currently, Bitcoin is trading around $3,500 after losing more than 80 percent of its value since hitting its all-time high at $20,000 in December 2017. We reported in our previous article that popular […]
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SFOX, an institutional crypto trading platform, recently released a comprehensive, data-packed analysis on the possible causes of the volatility in the cryptocurrency space over the month of November.
Between August and November Bitcoin and the crypto market remained somehow stable. Bitcoin operated around $6,400 and did not experience a lot of volatility. However, November moved the whole crypto market.
Is cryptocurrency becoming more mainstream? It could be if one of America’s most prominent game shows features an entire category devoted to it. The November 29, 2018, episode of “Jeopardy!” — which has been on the air since 1964 — offered five unique questions centered around cryptocurrencies and their technology to test out its contestants’ knowledge on the subject: The results reveal that they did indeed know their fair share.
Adam Back co-founder and CEO of Blockstream, seems very bullish about the future of Bitcoin (BTC). He said that it might be possible for Bitcoin to reach $500,000 dollars in the future. Since the beginning of the year, Bitcoin and other virtual currencies are in a bear trend that has severely affected the whole cryptocurrency […]
As the CEO of Hut 8, one of North America’s largest cryptocurrency miners and the world’s largest publicly traded cryptocurrency miner, I’m often asked questions about energy consumption in the mining of cryptocurrency.
Today has been a bleak day for Bitcoin. The price looked like it was holding steady at the $6,500 mark but now it has dropped 5% which has dragged everything else down with it, including Ethereum, XRP, Cardano, Stellar and more.
Bitcoin is in the news, and we’ve all seen the stories about early investors who’ve made millions and driven away in new lambos. So it’s only natural that people who haven’t invested already are wondering if they should.
Bitcoin is looking to resume its uptrend towards $12,500 based on its proximity with traditional rival gold. The analogy pops out of an erratic positive correlation between the two assets that have caused them to trade in tandem since March 2020.
Coinspeaker Bitcoin, Ethereum, Gold Analysis, Levels to WatchBitcoin for the first time since the early September crash, is showing signs of its comeback.Bitcoin, Ethereum, Gold Analysis, Levels to Watch
Coinspeaker Bitcoin and Gold Recover on a Silent MondayCryptocurrency market is showing recovery after a divergence last week, commodities follow the lead, hence Bitcoin was able to gain 1.
Bitcoin rallied above $9,600 during the afternoon hours of the New York session Thursday. But it corrected lower on profit-taking sentiment among daytraders. Market analyst Ryan Scott warned that Bitcoin could undergo an “insane shakeout wick.
Bitcoin climbed higher in the last 24 hours, breaking above the $9,500-mark for the first time in a month. The jump helped improve the cryptocurrency’s short-term bullish sentiment after weeks of a sideways trend.
The correlation between Bitcoin and its traditional rival Gold reached a four-month high on July 22. At the same time, the cryptocurrency’s correlation with the S&P 500 index plunged to its one-month low.
