- Bitcoin’s recent recovery from its mid-March lows has allowed it to outperform gold and virtually all major markets this year
- This strength has even allowed it to see over twice the returns that gold has seen – boosting the “digital gold” narrative that was popularized in 2019
- One prominent investor isn’t impressed with BTC’s performance, however, and believes that the risk-reward ratio still makes it a bad investment
Bitcoin has seen some extraordinary price action throughout 2020. It rallied from its yearly open around $7,000 to highs of $10,500 in mid-February, before then beginning a capitulatory descent that led it to lows of $3,800.
The rebound from these lows has allowed it to erase virtually all the losses that had come about as a result of the recent downtrend and has also allowed it to post a stark outperformance of virtually every major market.
In spite of this, one prominent investor isn’t impressed with Bitcoin’s 27% year-to-date climb and is explaining that on a risk-adjusted basis, BTC’s outperformance of gold still makes it an inferior asset.
He also notes that he anticipates the benchmark cryptocurrency to see further losses in the coming five days as its highly anticipated mining rewards halving fast approaches.
Bitcoin Outperforms Virtually All Traditional Markets in 2020
Bitcoin’s intense uptrend seen throughout the past couple of months has allowed it to climb nearly 30% from where it started the year.
The vast majority of these gains have come about throughout the past quarter, as BTC has climbed nearly 44% during this time frame, and roughly 5% this month alone.
This marks a notable outperformance of virtually every major traditional market – which have widely faced unprecedented levels of weakness in recent times due to the Coronavirus pandemic.