Amid unstable global financial conditions, Bitcoin continues its path as a juicy-looking hedge asset, based on its gains comparative to gold.
Sitting at a press time price of $1,717 per ounce, gold has risen approximately 12% from the start of 2020, TradingView data showed. In the same time frame, Bitcoin boasts a 30% gain, at a value of $9,290 at press time.
Bitcoin shines against mainstream markets
Coronavirus fears and prevention measures sent crypto and mainstream markets into a downward spiral. Bitcoin hit its most recent low on March 13, while traditional markets eventually lagged behind, posting a less dramatic recovery.
An increasing number of mainstream personalities have entered the crypto space in recent days, including hedge fund manager Paul Tudor Jones.
Morgan Creek Digital co-founder and partner, Anthony Pompliano, mentioned Bitcoin’s 2020 gains compared to gold in a May 13 tweet.
“I won’t hold my breath for the media to write articles stating ‘Bitcoin proving to be the best safe haven asset in the economic crisis,’” Pomp said, adding, “But even their silence can’t change the truth.” Pomplinao has long argued Bitcoin as a non-correlated hedge asset.
Bitcoin and gold gains varied over the past year
Based on the time frame used for comparison, Bitcoin and gold have seen varied gains and losses over the past year. Taking 2020’s highs and lows for both shows Bitcoin surging from its low at $3,830 up to its high of $10,080, a gain of 163% inside the year.
Taking 2020’s highs and lows for both shows Bitcoin surging from its low at $3,830 up to its high of $10,080, a gain of 163% inside the year. Gold swung from $1,450 to a height of $1,748 in the same time span, totalling a mere 20% of total upside.
Cryptox reached out to Pompliano for a follow up article, but has not heard back from him by press time.
