According to Messari, Bitcoin is outperforming real estate, stocks, gold and bonds and gives a higher rate of return over a four year period.
It was another strong day on the cryptocurrency markets as research highlighted Bitcoin’s market-beating performance in comparison to traditional stocks and shares.
Low correlation of Bitcoin with other asset classes and now outperforming gold and stocks, has made it “an growingly attractive asset to offset any losses seen in other parts of portfolios”, said Mira Christanto, the Messari author.
He noted renewed interest from sovereign wealth and pension funds, concluding, “they have realized this opportunity and have begun new allocation strategies to maximize long-term value.”
The news helped cryptocurrency global market capitalization record its fourth straight day of growth. Prices ticked up 2.58% over the past 24 hours. Bitcoin price increased 4.35%, thanks to its surge into the $16,000 at the time of publication.
Bitcoin Futures sentiment stayed strongly in the “buy” category as contracts purchased in USD, EUR and Japanese Yen are all in the green.
Ethereum saw marginal gains as the network suffered an unexpected hard fork, after Infura crashed.
Many exchanges suspended ERC20 token withdrawal services. But users shrugged it off, pushing the price as far as $476, before settling into the $460s.
That sudden movement pushed ETH to hover around its all-time high for 2020, adding further fuel to crypto’s accelerating bullish trend.
It was a mixed day in the markets. The S&P, Dow and Nasdaq Futures are all down in early European trading after the tech-centric Nasdaq saw a comeback after three days of traders cashing out of tech stocks in favor of bargains elsewhere.
But that trend appears to have come to a halt, as shares in FAANG stocks recovered, with Apple up 3% in the day’s trading.
The initial hubris around vaccine hopes seems to have been replaced with the harsher reality that there’s still a long time until economies can operate at full capacity.
In the United States, daily COVID cases have stayed stubbornly above the 100,000 mark since November 4, threatening to cripple the economy long before a vaccine can be distributed.
There are now 21.5 million Americans on unemployment benefits, and with best estimates putting a nationwide rollout of a vaccine somewhere around Easter, investors have to tread carefully in the months to come.