Bitcoin (BTC) Outperforms Gold in YTD Returns
The question as to which is a better hedge during a financial crisis is finally being answered.
John P. Njui • Ethereum News • April 30, 2020 • in Discover the Latest Cryptocurrency News Today
- The debate as to which asset between Gold and Bitcoin (BTC) is a better hedge during a financial crisis has found a testing environment as a result of the economic impact of COVID19.
- An analysis of both assets results in Bitcoin (BTC) outperforming Gold in Year-to-Date returns.
The question as to which asset between Gold and Bitcoin (BTC) is a better hedge during a financial crisis is finally being answered. The Coronavirus Induced global recession has provided the perfect testing ground to finally put to rest the debate as to which asset is a better store of value. The CEO of Pantera Capital, Dan Morehead, posted the following tweet that showcased that Bitcoin (BTC) was ahead of Gold in terms of Year-to-date returns.
Updated YTD Gains of Both Bitcoin (BTC) and Gold
At the time of writing this, Bitcoin (BTC) is valued at $8,830 and Gold at $1,705. Going back to the 1st of January, BTC opened the year at a value of approximately $7,200 with Gold ushering in the New Year at a value of approximately $1,500. Doing the math, we find YTD returns of 22.6% for Bitcoin and 13.33% for Gold.
Therefore, Bitcoin has increased its YTD gains since Mr. Morehead tweeted his observation.
What’s Next for the Financial and Cryptocurrency Markets?
With regard to the future of both the crypto and stock markets, there is still a sense of uneasiness as the world continues to cope with the spread of COVID19. However, the announcement of promising results when using Remdesivir to reduce the recovery times of Coronavirus patients has brought back much-needed optimism not only in the markets but also in the medical world.
Additionally, the Bitcoin (BTC) halving is now less than 2 weeks away and the King of Crypto seems set to shrug off the earlier identified correlation with the S&P 500 as it attempts to hold the $8,800 – $8.600 support area in preparation for another push up.
Brief T.A of Bitcoin (BTC)
Further checking the daily BTC/USDT chart courtesy of Tradingview, we observe the following:
- Bitcoin’s trade volume is in the green indicating buying interest in the asset as the halving approaches.
- The current price is above the 50, 100 and 200 Daily moving averages indicating a bullish environment.
- Using the aforementioned MAs, Bitcoin looks set to reject the earlier identified Death cross on the daily chart.
- BTC’s daily MACD is in the green and shows continual buying interest.
- However, the MFI indicates an overbought situation for Bitcoin and could signal a retracement before another drive up as the BTC halving approaches.
(Feature image courtesy of Aleksi Räisä on Unsplash.)
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
Article re-posted on Markethive by Jeffrey Sloe
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