Bitcoin (BTC) has maintained a profitable investment record over the past few years and is still dubbed as one of the best-performing assets in 2020.
New research by New York-based research firm Fundstrat identifies BTC as the “best-performing asset class in 2020,” beating U.S. Treasuries and Gold.
The data looked into the returns posted by BTC in 2019 and 2020.
#Bitcoin Bitcoin is best performing asset class in 2020, beating Treasuries and Gold, both up an impressive +21%, +13%
– Bitcoin top performer in 2019
– the 'halvening' happens within days
– Paul Tudor Jones buying Bitcoin
— Thomas Lee (@fundstrat) May 8, 2020
Bitcoin records a 39% YTD return for 2020
As shown by the data, BTC’s year-to-date return is at 39%. This outperformed traditional financial assets like gold that posted 12.5% YTD returns, and U.S. Treasuries with only 8.9%.
Government bonds and NASDAQ, considered low-risk investments, recorded 1.8% and 1.7% YTD returns, respectively. Other investment assets like the U.S. high-grade credit and 3M Cash posted 0.6% and 0.5% returns.
Last year’s annual return for the asset classes was also presented in Fundstrat’s data.
From the data derived for 2019, BTC’s returns were at 92.2%. This has topped other asset classes such as NASDAQ, which posted only 35.2%, S&P 500 at 28.9%, MSCI World Index at 25.2%.
Gold lags far behind from BTC, with gold posting 18.3% returns that year. Statistically, BTC has been more profitable than gold, demonstrating a 73.9% difference between the returns of the same assets that year.
Where is BTC today?
As of this writing, CoinMarketCap data shows that BTC dominance is now at 67.5%. This means that most of the funds held in the cryptocurrency market are BTC.
This has risen from last month’s 64% to 65% BTC dominance, signaling an increased uptake of BTC despite an economic downturn across the globe.
BTC has been undergoing an interesting price action over the past few days. Just this weekend, BTC crashed after crossing the US$10,000 [AU$15,400] level to around the $8,700-range for a very short moment.
However, this is expected among cryptocurrency observers and analysts, especially since the BTC halving is coming up only a few more blocks away.
BTC halving is finally here
The hype surrounding BTC right now — especially with the halving-induced market entry for some newbie investors — could possibly have an influence on the price of the coin in the coming days.
BTC is already considered the best-performing asset class in 2020. However, if BTC halving drives the price of the coin further upwards and helps make a profit for its HODLers, BTC can possibly attract more investors from other asset classes to move to the coin.
Featured image courtesy of Zach Copley/Flickr