As stock-market prices climb ever higher, bitcoin is towering above them, and proving resilient.
Bitcoin was higher, appearing to mount a fresh run toward the all-time-high near $20,000. The largest cryptocurrency slid 1.3% in the seven days through Sunday, snapping a seven-week winning streak.
As November draws to a close, bitcoin is up 37% just this month, its best performance since May 2019.
Even if the market has some froth, bitcoin fundamentals look sound, the blockchain research firm Chainalysis wrote in a report.
In traditional markets, European shares were steady and U.S. stock futures pointed to a lower open as investors turned cautious after big gains over the past few weeks boosted coronavirus-vaccine developments.
From a broad 2020 perspective, its hardly news that bitcoin in November once again outperformed the worlds major asset classes.
During a month when a closely tracked gauge of global equities, the MSCI World Index, surged 13% for its best performance on record, bitcoin jumped nearly three times as fast.
But thats been happening a lot recently, with the cryptocurrency up an astounding 163% so far in 2020, or roughly 13 times the 13% year-to-date gains for U.S. stocks. Gold is up 17% in 2020.
Yet in hindsight, November may prove to be a crucial month for bitcoin for a few key reasons.
First, in a theme that First Mover has repeatedly hammered this year, many large institutional investors are herd followers, driven by backward-looking performance track records, and they often just ape other investors who have previously performed well. The latest announcement of institutional adoption – perhaps the buzziest of buzzwords these days among cryptocurrency analysts – arrived over the weekend from the $233 billion investment firm Guggenheim. Novembers outperformance, coupled with a raft of breathless headlines ...
Disclaimer: The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.