Bitcoin Labeled King of All Asset Classes
According to latest media reports, the boutique analytics firm Delphi Digital has labeled the world’s number one cryptocurrency Bitcoin (BTC) the king of all asset classes. The firm gave this moniker to the digital asset due to its strong performance in the last four months.
Market Commentary
Delphi Digital has based its opinion on the returns that BTC has shown in the last 4 months, especially considering that the crypto’s outperformance comes at a time when traditional asset classes are facing tremendous pressure to sell.
The analytics firm states that BTC’s May performance has been especially significant given the weakness seen in the other asset classes. In the broader market, investors have been switching from riskier assets to safe haven ones because of the increased concerns regarding economic growth this year, and because of the escalating trade war between the United States and China.
Despite these market conditions, Bitcoin has outperformed all other asset classes, including the popular safe haven ones such as gold and oil.
A Delphi Digital analyst stated that contrary to BTC’s declines in the last one year, the cryptocurrency has stayed more or less unaffected by the sell-off in other risk assets. The market’s expectation is that volatility in the crypto will trend even higher than it is now.
The analyst also stated that while it was still a little early to declare victory for BTC against the other asset classes at this time, the crypto’s uncorrelated nature has shown itself to be true thus far.
Pushing Bitcoin Prices Up Further
Dadiani Syndicate, a cryptocurrency investment firm, was recently in the news for reportedly being approached by a client who wished to buy as much as 25% of all the Bitcoin in circulation.
With regard to this news, EToro’s market analyst Mati Greenspan commented that a buyer of this kind would push up the price of BTC and would therefore make this kind of an accumulation of the digital asset even more expensive.
Other market experts also feel that the price of Bitcoin is going to go much higher soon. Michael Novogratz, founder and Chief Executive Officer of the crypto merchant bank Galaxy Digital, has stated that he expects the price of BTC to settle in the range of $7,000 to $10,000 per token.
He feels that if he is wrong about this range, it would be to the upside, especially seeing the renewed momentum the crypto has gained in the last few months.