Delphi Digital: Bitcoin Reigns Supreme in 2019, is the King of the Asset Class Hill
When it comes to any and all kinds of assets available to investors across the world, Bitcoin has managed to surpass in performance, any other kind of asset. according to the financial performance of BTC over the course of May, its value rose more than 60 percent – making for the highest monthly return in more than a year.
This increase of 60 percent represents the single greatest performance from the world of assets in the world over 2019 so far.
These statistics come from the speciality analytics firm – Delphi Digital – which went on to give the Bitcoin the honorary title as ‘the king of Asset Class Hill,' a fitting description for a digital asset class which is constantly maligned by more mainstream individuals within the marketing world. Made even more of an apt description thanks to its consecutive months of solid returns.
Graph and Bitcoin performance relative to other asset classes and stocks courtesy of Delphi Digital. According to the team responsible for this research within Delphi Digital:
“The acceleration in BTC’s performance comes at a time when conventional risk assets, notably global equity markets, continue to see selling pressure […],” the team continues on to explain.
“May’s outperformance has been especially important given the broader weakness across many other asset classes.”
Investment Flight Takes Shape From Riskier Assets While Bitcoin is Unperturbed
The current landscape for mainstream investment markets as well as public equity are undergoing a phase of anxiety amid some continually bad news internationally. It's because of this that it, the team concludes, is “riddled with concerns.” One of the more prominent examples that we have for this would be the New York Stock Exchange.
The ‘concerns' and bad news in question is pretty ubiquitous whether you're paying attention on the radio, TV or newspapers – with earnings expectations for workers remaining relatively stagnant, continuing macroeconomic concerns relating to the ongoing trade disputes between China and the United States as well as a broader discontent over the rate of economic growth has since resulted in investors retreating from more ‘risky' assets in exchange for what we refer to as ‘safe haven assets' such as US Treasuries, government bonds and Precious Metals.
Even with this investment ‘flight' which takes place in a bearish climate, even against ‘safe' assets like Gold, Japanese Yen, and WTI Crude, Bitcoin still managed to more than trounce these tenfold over May along.
Courtesy of Delphi Digital
Within the body of its research, Delphi Digital went on to explain that, while Bitcoin had managed to take some serious ground compared to its conventional rivals, investors cannot rest on these digital laurels.
“Contrary to its recent history, Bitcoin has remained largely unaffected by the sell-off in risk assets, though expectations for market volatility are trending higher,” its analysts continued. “It is still too early to claim victory yet, but BTC’s uncorrelated nature has so far proved true.”
The analysts of the team have since determined that, even if investors were to allocate small volumes of BTC within their more conventional investment portfolios – such as one made up of 60 percent stock assets and 40 percent fixed income) over the course of three years, served to dramatically boost the kinds of annual returns obtained by the investor.
When we take this into consideration, it makes a great deal of sense, especially when looking at the kind of Bullish charge that Bitcoin underwent over the course of 2017.
“Just a 3-percent allocation (which we acknowledge is still a sizable position for most conservative investors) would have generated a compound annual growth rate of 12 percent over the last 36 months, without raising the portfolio‘s volatility or maximum drawdown by much,” said the firm.
Bitcoin’s price is $33,070.75 BTC/USD exchange rate today. The real-time BTC market cap of $619.79 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $32.42 Billion and live coin value change of BTC 0.61 in the last 24 hours.