Amidst volatile global financial conditions Bitcoin continues on its path as an attractive looking hedge asset based on its comparative returns on gold.
Located At $ 1,717 an ounce at press time, gold has increased about 12% since early 2020based on TradingView data. Over the same period, Bitcoin had a 30% gain of $ 9,290 at the time of publication.
Bitcoin shines in important markets
Coronavirus fears and preventive measures have put crypto and major markets in a downward spiral. Bitcoin’s price hit its recent low on March 13, while traditional markets eventually lagged and saw a less dramatic recovery.
In the past few days, more and more leading figures have entered cryptography, including hedge fund manager Paul Tudor Jones.
Morgan Creek Digital’s co-founder and partner, Anthony Pompliano, mentioned Bitcoin’s gains in 2020 compared to gold in a Tweet May 13.
“I will not hold my breath for the media to write articles confirming that Bitcoin is the best refuge in the economic crisis.”Pomp said, adding, “But even his silence can’t change the truth.” Pomplinao has long argued that Bitcoin is an uncorrelated hedge.
Bitcoin and gold gains were different last year
Based on the time frame used for comparison, Bitcoin and Gold have had different gains and losses over the past year.. Taking the 2020 highs and lows for both, Bitcoin shows that Bitcoin has risen from its low of $ 3,830 to its high of $ 10,080, an increase of 163% over the year.
Taking the 2020 highs and lows for both, Bitcoin rises from its low of $ 3,830 to its high of $ 10,080, an increase of 163% over the year.. Gold rose from $ 1,450 to $ 1,748 over the same period, which is only 20% of total profit.
Cointelegraph contacted Pompliano for a follow-up article, but no response has been received by the time of publication.