Bitcoin outperforming traditional markets
06 Aug 2020
“Bitcoin mania appears to be almost back in full bloom,” read an article on Bloomberg on Thursday.
It comes as the price of the world’s largest cryptocurrency jumped 5%, outperforming both global stocks and gold, the latter of which Bitcoin is often compared.
Coin Desk, a high-profile crypto news site, reported that, “Even gold’s 35% gain this year is no match for Bitcoin’s 63% price increase.” The S&P 500 Index, the U.S. benchmark, is now up 3% on the year.
“This is probably the ultimate in momentum-based assets,” Matt Maley, chief market strategist at Miller Tabak & Co told Bloomberg. “The best thing that can happen right now is if you go back down and successfully test that support level and bounce off that. You get that kind of move and it’s going to be very bullish.”
The deVere CEO and founder Nigel Green was recently quoted in the media as saying: “Bitcoin is currently realising its reputation as a form of digital gold.
“Up to now, gold has been known as the ultimate safe-haven asset, but Bitcoin - which shares its key characteristics of being a store of value and scarcity – could potentially knock gold from its long-held position in the future as the world becomes ever-more tech-driven,” says Mr Green.
He added: “Geopolitical issues, such as the U.S.-China spat, will prompt many savvy investors to increase exposure to decentralized, non-sovereign, secure digital currencies, including Bitcoin, to shield them from the turbulence taking place in traditional markets.”
It would appear that the so-called ‘Bitcoin bulls’ are back in charge as the price, at the time of writing on Thursday afternoon, hits more than $11,860.