Over the years, several reports have emerged from mainstream media about the highly volatile nature of the world’s most popular cryptocurrency, Bitcoin (BTC), with many financial experts backing traditional markets, especially the S&P 500.
In recent times, however, that narrative has changed, as Bitcoin did not only win the award of the best performing asset of the last decade but is currently outperforming most traditional investments on a Year-To-Date (YTD) chart.
Recent data on MarketWatch, an online platform that provides financial information for the cryptocurrency market and the global stock market, revealed that Bitcoin is currently up by 11% on YTD, a feat that goes contrary to financial experts’ notion about the digital currency.
On the other hand, the YTD performance of the S&P 500 and DJIA is nothing to write home about as both markets are currently down by 23% and 16% respectively. This shows that Bitcoin outperformed the S&P 500 by a whopping 34% over the past year.
Celebrating Bitcoin’s YTD’s performance, Anthony Pompliano, Morgan Creek Digital Partner and renowned crypto enthusiast, urged the public to show the data to their financial advisors, and enquire why the popular cryptocurrency has been ignored over the years.
S&P 500 YTD: -23%
DJIA YTD: -16%
Bitcoin: YTD: +11%Show this to your financial advisor and ask them why they keep ignoring the best performing asset of the last decade.
— Pomp ? (@APompliano) April 29, 2020
COVID-19 effect on global markets
Understandably, the novel Coronavirus (COVID-19) pandemic that has ravaged economic activities globally, can be attributed to the negative performance of the stock markets.
Most assets have become a shadow of themselves, as they reportedly shed a large chunk of their values within the last two months, especially in March.
Although Bitcoin was also affected by the pandemic, which saw it trade for as low as $3700 on March 12, the cryptocurrency has weathered the storm over within a short time, and it is trading at $8,950 at the time of writing.
The quick recovery of Bitcoin in the heat of the COVID-19 saga has rebuffed the widespread misconceptions about the digital currency and has proven that it can be a trusted asset.
This is not the first time that Bitcoin is outperforming word-class assets, as the cryptocurrency’s growth last year was far better than notable traditional investment, including oil, S&P 500, Nasdaq 100, among others.
