Bitcoin Beats S&P 500 by 105% while Ripple’s XRP is Today’s Highest Gainer with IOTA in Tow
- Bitcoin has zero correlation with traditional assets
- Ongoing developments give investors’ confidence that bitcoin is an “exciting growth asset” – Meltem Demirors
XRP leads the market after the ETN release on Boerse Stuttgart & Coinbase supporting New York users
After the brutal winter of 2018 that saw Bitcoin crash 85 percent from its peak, the spring of 2019 has brought forth a fresh wave of greens.
The leading cryptocurrency smashed through $8,000 yesterday and is currently trading at $8,157 with 24-hours gains of over 12 percent.
Till date, BTC/USD is up 118 percent in 2019 while the S&P 500 is up by only 12 percent.
Bitcoin vs. the S&P 500 this year 🤯 pic.twitter.com/B2e72E4HC9
— CNBC's Fast Money (@CNBCFastMoney) May 13, 2019
However, as have been stated in the past and further analyzed by economist and crypto trader, Alex Kruger, Bitcoin has zero correlation with traditional assets.
“Bitcoin's correlation with traditional assets usually hovers around zero, yet it is increasing. Coincidence, or trend? It may be a trend, as correlations may increase the more institutionalized the space becomes, as institutional traders move among asset classes,”
BTC Flying Amidst The Equity Market Carnage
The correlation might be zero but while the flagship cryptocurrency is enjoying a highly charged rally, mainstream markets are tumbling after China decided to raise tariffs of US goods as the ongoing trade war between the world's largest economies escalates.
It all started last week when Trump threatened to hike tariffs from 10% to 25% on $200 billion worth of Chinese goods. Now, the running narrative in the market is that his volatility will long continue.
“I think this is a prelude of things to come,”
said Phil Blancato, CEO of Ladenburg Thalmann Asset Management.
“We should expect more volatility for the foreseeable future.”
Bitcoin An Exciting Growth Asset
However, this is a good time for the crypto market as Bitcoin shoots up, readying for $10k. In a recent interview with Yahoo Finance, Chief Strategy Officer at Coin Shares, Meltem Demirors talk about the volatility in bitcoin space.
“Bitcoin is still highly speculative, it’s a new asset class, it’s a new technology and so much of the price volatility around Bitcoin has really waxed and waned,”
She further talked about how a number of really positive announcements that are coming from the blockchain week in New York including Bakkt announcing its physically-settled bitcoin futures’ launching in July that is “exciting” and Microsoft using the bitcoin network for its digital identity service.
These developments Demirors says gives investors confidence that bitcoin is an
“exciting growth asset.”
Highlight: “Bitcoin is still highly speculative,” says @CoinSharesCo Chief Strategy Officer Meltem Demirors. “Much of the price volatility… has really waxed and waned.” But financial institutions are now integrating it into their legacy systems, she adds. Full interview: pic.twitter.com/smOyV3zXIA
— Yahoo Finance (@YahooFinance) May 13, 2019
XRP Leading the Market Gains, IOTA Up over 13%
Finally, XRP/USD is showing greens. The third largest cryptocurrency is today's highest gainer with over 18 percent gains trading at $0.383. At one point, XRP reached $0.409 that was the last hit in late December 2018.
The surge came on the back of two news including Coinbase rolling out XRP support for New York users and German exchange Boerse Stuttgart revealing that it had launched a dedicated exchange-traded note (ETN) for XRP and Litecoin.
The reason Bitcoin is surging is due to its strictly limited supply of 21 million coins that will ever be created.
— Mati Greenspan (@MatiGreenspan) May 13, 2019
IOTA is also enjoying the gains of 13.39 percent while trading at $0.356. Recently, IOTA Foundation partnered up with the transportation department in the city of Austin, Texas to improve the interoperability between various transportation systems.
Live Bitcoin (BTC) Price:
1 BTC/USD =$62,077.3743 change ~ 0.88%