Bitcoin (BTC) is still outperforming the top traditional financial assets so far in 2020 – even after a dour performance this month.
At time of writing (10:00 UTC), bitcoin is trading around $9,170, representing a 27.8% gain on a year-to-date (YTD) basis, according to CoinDesk’s Bitcoin Price Index.
Meanwhile, gold and the U.S. Dollar Index, which tracks the value of the greenback against major currencies, are reporting 16% and 5.4% gains for 2020, respectively. The S&P 500 index and oil prices are in the red YTD at -5.5% and -34.22%, respectively, as per data source Skew.Price performance of major assetsSource: Skew
While bitcoin’s YTD performance looks impressive, on a monthly basis the cryptocurrency is being outshone by most of the other assets included in the chart.
At press time, bitcoin is down over 3% from the opening price of $9,444 observed on June 1, having rallied by 34% and 9.5% in April and May, respectively.
“We are in a post-halving price action lull, but investor and on-chain activity has been strong,” said Kyle Davies, co-founder and chairman at Three Arrows Capital.
Bitcoin underwent its third mining reward halving on May 11. The event was expected by some to accelerate price gains; however, strong buying pressure has remained elusive so far, with the cryptocurrency restricted largely to the narrow range of $9,000 to $10,000 since mid May.
Investors, however, continue to pour money into bitcoin-based exchange-traded instruments like Grayscale’s Bitcoin Trust (GBTC), the largest by assets under management (AUM).
“Grayscale saw record subscriptions of 19,000 bitcoin in the latest 2 week period ending 24-Jun,” said Davies, whose firm is the biggest public shareholder in GBTC. In May, the trust accumulated 1.5 times the total of coins mined since the May 11 halving.
Grayscale is a fully owned subsidiary of Digital Currency Group, CoinDesk’s parent firm.