Just 5% Bitcoin with 95% Cash Beats S&P 500 with More Return & Less Risk
- Conventional risk assets continue to see selling pressure while Bitcoin leads the market with over 110% gains YTD
- 5% BTC + 95% Cash beats S&P returns for 6 years in a row
- Among top cap cryptos, Binance Coin, Litecoin, and EOS leads the market with Stellar and XRP the least gainers
Last month, Bitcoin registered a whopping 60 percent gains and till date in 2019, the leading cryptocurrency is up by more than 110 percent.
As we reported, Bitcoin outperformed traditional stocks like the S&P 500, government bonds, oil, and gold. This has been what got the flagship cryptocurrency with the title “King of Asset Class Hill” in 2019.
Analysis firm Delhi Digital labeled Bitcoin with this title after it posted four consecutive months of solid return last registered in mid-2017.
“The acceleration in BTC’s performance comes at a time when conventional risk assets, notably global equity markets, continue to see selling pressure […],” said Delphi Digital adding, “May’s outperformance has been especially important given the broader weakness across many other asset classes.”
This is why including just 5 percent of Bitcoin in a portfolio can work wonders to provide you with profits. Crypto analysts, planB took to Twitter to share how the combination of 5 percent of Bitcoin and 95 percent of cash beats the return of S&P 500 that too with more returns and less risk.
PlanB shares how this strategy has been working out for every year for the last 6 years in a row. He further notes the maximum yearly loss of this combination has been just 5 percent in comparison to 6 percent of S&P’s that was 38 percent in 2008.
5% #Bitcoin + 95% cash beats S&P500: more return and less risk .. every year, 6 years in a row. Note that max yearly loss (risk) of 5% Bitcoin + 95% cash is -5% .. S&P did -6% in 2018 (and -38% in 2008!!). pic.twitter.com/MHj04zAIId
— PlanB (@100trillionUSD) June 4, 2019
This gap could be expected to increase even further as amidst the slow economic growth and the ongoing trade war have investors fleeing from the risky assets. Though these investors have found a hedge in the yellow metal gold and oil, Bitcoin has crushed these assets as their profits are nowhere near Bitcoin.
Delhi Digital also shared how public equity markets are “riddly with concerns” currently and though it is still too early for BTC to claim victory, “BTC’s uncorrelated nature has so far proved true.” Talking about the allocation, the firm said:
“just a 3-percent allocation 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.”
If we take a look at the border cryptocurrency market, among the large cap cryptos Binance Coin (BNB) made the highest gains of over 400 percent till date in 2019 followed by Litecoin (242%), and EOS (160%) with Stellar (10%) and XRP (16%) being the least gainers.
Bitcoin’s price is $44,415.49 BTC/USD exchange rate today. The real-time BTC market cap of $831.13 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $39.09 Billion and live coin value change of BTC -3.18 in the last 24 hours.