The Currency Analytics
By Steven Anderson
Bitcoin Ended 2019 With Above $7,000 YOY Return
Bitcoin Shows Disproportionately Risks Despite Being the “Excellent Buy” In 2019
The largest cryptocurrency in the world yielded higher yearly returns than gold and S&P 500, with a banging 93.8% rise in value.
During the past six months, Bitcoin displayed a low correlation index compared to traditional assets like stocks and gold.
In addition, the SFOX report states, “At the beginning of 2019, a trader could only buy 1 BTC for $3710.15.”
Despite Bitcoin's many critics, it ended 2019 with more than $7,000 year-on-end returns. This amount is higher when compared to other asset classes.
As we enter 2020, it will not hurt to keep in mind that the cryptocurrency industry is known for its characteristic to change like the speed of light.
After all, BTC may appear correlated to gold and other commodities during global uncertainty. The recent global geopolitical tensions between the US and Iran can be proof.
SFOX concluded that the combination of low correlation and low volatility made Bitcoin a compelling tool in the previous year’s portfolio management.
Compared to the gold’s 52.8% and S&P 500’s 29%, the YOY returns of BTC is really far higher, with 93.8%.
Using the Sharpe ratio, which is a risk-reward measure comparing the returns of an asset with its volatility, the S&P 500 held a significantly higher result.
Based on the recent crypto sector’s market cap, Tim Enneking, SFOX crypto fund manager, observes that “There are tens, if not hundreds, of funds on the planet that - ignoring the…
Overall, the trends remain unknown this 2020. additionally, SFOX also announced the upcoming BTC halving along with the options contracts’ introduction being the potential drivers.