Bitcoin gains 28% so far in 2020 amid risk-off sentiment
Bitcoin managed to outperform other asset classes including gold
Jan 30, 2020 / 04:30 PM IST
Bitcoin has emerged as the top rising asset class so far in 2020 returning a whopping 28.45 percent in less than a month, data shows.
According to data collected from Coindesk, the world's largest cryptocurrency closed at $9,277 on January 29 versus $7,222 on December 31, 2019.
It was trading near its three-month high of $9,369 at the time of publishing this copy.
Bitcoin managed to outperform other asset classes including gold which rose 3.06 percent, rupee (0.06 percent). Meanwhile, Nifty and crude generated negative returns falling 0.32 percent and 11.09 percent, respectively, so far this year.
Bitcoin's price surge came on the back of several geopolitical and global events such as US-Iran tussle and the outbreak of coronavirus in China.
The cryptocurrency is showing behavioural patterns similar to gold, Bloomberg reported.
“Since the beginning of the new year, the two assets 60-day correlation has flipped from negative to positive. The correlation coefficient now stands at 0.21, up from a low of negative 0.15 in December, and above the trailing one-year daily average,” said a Bloomberg report.
A similar observation was made by analyst Mati Greenspan.
Ace investor Thomas Lee, in a tweet, claimed that Bitcoin has surpassed gold in the so-called battle of the safe havens.
However, financial commentator and Bitcoin sceptic Peter Schiff rebutted the safe-haven appeal of Bitcoin touting trading in the cryptocurrency as merely a game of speculation.
At current valuation, Bitcoin accounts for nearly 66.4 percent of the overall cryptocurrency market. It has a market cap of nearly $170 billion.