According to Datalight, a cryptocurrency data analytics platform, Bitcoin leads the return on investment (ROI) among the top 10 stocks by capitalization.
In December 2018, Bitcoin’s ROI fell sharply, landing the cryptocurrency at the tenth spot. Six months later, in May 2019, Bitcoin regained the top spot by beating tech giants like Amazon and Microsoft.
Bitcoin Outperforms Every Stock in the Market
The data looks at ROI values since August 2017, back when Bitcoin beat some of the best-performing stocks on the US stock market such as Apple, Berkshire Hathaway, JPMorgan, and Visa. Bitcoin had a steady rally until May 2018, when Amazon took the first spot. After this period, it fell rapidly as a bear market in cryptocurrencies took hold. It started showing negative returns as it hit bottom at $3200 in December 2018.
However, after hitting its bottom, Bitcoin rebounded to the first spot again in May 2019. Its price has more than tripled since the bottom in December 2018. In 2019, the asset then reached a high of $13,800, after which the cryptocurrency went through a strong price correction and is currently hovering over $10,000. In addition to that, Bitcoin also managed to outperform every stock in the market and commodities including gold and oil in 2019.
Anthony Pompliano, a co-founder of Morgan Creek Digital, said that Bitcoin was acting as a hedge against global instability and was moving differently compared to other asset classes. Based on performance, Bitcoin has separated itself from other asset classes. While the S&P 500 and US Crude Oil futures showed a gain of 15 percent this year, Bitcoin showed a gain of 154 percent.
Altcoins Lag Far Behind Bitcoin in Returns
— Alex Krüger (@krugermacro) August 1, 2019
While Bitcoin has been performing exceptionally well, altcoins seem to be struggling. Cryptocurrency analyst Alex Krüger had said that the majority of altcoins have become asymmetric bets with an unattractive return profile. According to a report that showcased that performance of cryptocurrencies in July, the majority of altcoins were down by almost 40 percent. Notable altcoins like Ethereum and Litecoin saw a drop 28 percent and 32 percent respectively, while Bitcoin only dropped 2 percent.
— CNBC's Fast Money (@CNBCFastMoney) July 8, 2019
However, unlike the struggling altcoins, Bitcoin could reach an all-time high, according to Morgan Creek Capital Management’s CEO, Mark Yusko. He had said that the world’s first cryptocurrency could hit $30,000 before the next major correction, which could then set it off to reach $100,000 in the future. Yusko added that the asset is already in its next parabolic phase and has left the lows of the bear market behind.
Do you think Bitcoin is poised to reach $100,000 in the next year or so? Let us know your thoughts in the comments below.
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