With the amazing increase in April, Bitcoin has changed from "bronze" to "king" and has become one of the best performing assets this year.
After a wave of crazy rise in early April, the Bitcoin King returned, becoming one of the highest-yielding assets of the year-to-date (YTD), leaving most of the major assets such as the Nasdaq, S&P 500, crude oil and gold behind.
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BTC performance is eye-catching
In the first week of April, Bitcoin passed through a heavy barrier, rising from $4,130 to $5,300.
Since the beginning of the month, the BTC price has been maintained in the range of 4,800 US dollars to 5,300 US dollars. Given its initial price of 3,760 US dollars, BTC's year-to-date yield is over 40%, which is quite impressive.
Although large assets such as crude oil, stocks, and gold also have good performances, they are still slightly inferior to Bitcoin.
The crude oil market has performed well this year. At the beginning of January, WTI crude oil price remained at 46.3 US dollars. After four months of climbing, it finally broke through 63 US dollars, and has risen nearly 37% year-to-date .
International oil prices have been at historic lows since falling in 2014. Experts believe that US oil production is highly innovative due to hydraulic fracturing technology, Saudi Arabia's high oil production, global economic slowdown and higher US dollar factors may lead to oversupply in the crude oil market, which in turn will affect oil prices.
According to previous CNBC reports, demand for crude oil in 2019 was better than expected. At the same time, due to the Libyan conflict, OPEC's continued supply cuts and US sanctions against Iran and Venezuela, oil prices rose again, and crude oil futures also generated higher returns on investment returns.
Stock market rebound
The three major US stock indexes – the Dow Jones Industrial Equity Index, the Nasdaq Index and the S&P 500 Index – all gained double-digit gains.
US stocks suffered a sharp fall last Christmas Eve, the three major stock indexes fell more than 10%, but since then US stocks played a "roller coaster", after Christmas began a strong rebound, the three major stock indexes soared. It is reported that the Christmas Eve plunge is mainly affected by the Fed, IMF and other international authorities to reduce the impact on global economic growth expectations. In addition, Sino-US trade friction has also affected the stock market trend.
Since the beginning of the year, the Nasdaq, the Dow and the S&P have risen by 20.5%, 13.9% and 15.9% respectively .
At the same time, the A-share market has gradually picked up this year.
So far this year, the Shanghai Composite Index has risen by 30% , the first four levels since 2000, and the rate of return is second only to the 2007, 2009 and 2015 bull markets.
Bitcoin’s tangible rival gold has performed poorly.
Investors invest in gold often to balance earnings and spread risk. In the past 10 years, gold prices have risen by an average of 4.8% per year.
However , since January this year , the price of gold has fallen by 0.4% , far lower than the return of 40% of Bitcoin .
Overall, with the amazing increase in April, Bitcoin has changed from “Bronze” to “King” and has become one of the best performing assets of the year.
In addition, Bitcoin is the best performing asset of the past decade. Historical data shows that BTC's annual low has soared from $185 in 2015 to $3,200 last year, a 16-fold increase .
However, the excellent performance of Bitcoin in the past can not represent the future trend. Its high volatility once made many investors daunting. At present, there are still many people who think that Bitcoin is doomed to fail, or eventually fall into the dust, and it becomes irrelevant. But more people are willing to believe that Bitcoin's future prospects are bright and have the potential to rank among the big categories of assets. All of this has to be proven by time.
Author: Gu Mengting, Source: shallot
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