The cryptocurrency market has seen a turn in fortunes over the past couple of weeks with Bitcoin [BTC], the largest of the assets leading the charge in price hike. Analysis has also shown that the BTC growth index was not just significant compared to the cryptocurrency industry, but also when compared to mainstream financial ecosystems.
In a survey done over May, it was noticed that Bitcoin had one of the highest return percentages when kept side by side with other financial commodities. Post the significant price hikes that allowed BTC to breach the $9,000 mark, the king coin had returns which crossed 51 percent. Another point for Bitcoin came when it was revealed that the cryptocurrency was one of two assets that had a double-digit increase in returns. BTC was followed by volatility, which witnessed returns upward of 19 percent.
Several analysts earlier noted that the Yen-Dollar pairing was one of the best performing mainstream assets in the market and even its 3 percent plus returns paled in comparison to that of Bitcoin’s. Yen’s growth was also helped by Donald Trump’s threat that the United States was going to increase tariffs on US- Mexico and US-China trade. This news caused the Mexican Peso to plunge by 3 percent while the Yen/Dollar’s rise caused the dollar to drop by 0.8 percent against the Japanese Yen. Steve Barrow, the head of G-10 strategy at Standard Bank, said:
“The key to the performance of financial assets could be whether the Fed resists market pressure for rate cuts…Our view is still that the market is right to think that the next move will be a cut, but we still think that there will be less cuts and they will come at a later stage than the market currently anticipates.”
Other assets over which Bitcoin returns dominated were Gold, the S&P Market, Nasdaq 100 and even oil. In the month of May, Gold had returns of just 2 percent while the S&P 500 and Oil saw negative returns, clocking -6 percent and -17 percent, respectively.
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