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Bitcoin [BTC] has provided far higher returns than most traditional assets, claims Binance research

Akash Anand

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Bitcoin [BTC] has provided far higher returns than most traditional assets, claims Binance research
Source: Pixabay

Bitcoin’s [BTC] recent surge has got the entire cryptoverse talking, with many in the space claiming that the king coin will rise to its former glories. According to Binance Research,

“Despite its perceived riskiness, Bitcoin $BTC has provided far higher returns than most traditional assets over the past 2 years based on the following risk indicators/ratios.”

When compared to traditional assets like tech stocks and crude oil, Bitcoin was placed first in terms of 2-year returns. While Bitcoin provided a 306 percent yield on investments, tech stocks could only furnish 46 percent in terms of yields. Gold, an asset that Bitcoin is trying to displace, gave a measly 2 percent in returns.

Source: Binance Research

Source: Binance Research

According to the research, there is clear disparity in returns when traditional assets and Bitcoin are compared. Agriculture, which is considered to be one of the most fundamental areas of the industry, was in the negative [minus 19 percent] when it came to appreciating investments in the area.

The Sortino ratio, which measures excess return, stated that Bitcoin noted a 283 percent increase over the past two years while tech stocks came in second at a much lower 190 percent. Agriculture was again the worst performer here, with a downtrend of negative 115 percent.



Source: Binance Research

Source: Binance Research

The next parameter that was used to compare the assets was the Sharpe ratio that measures excess returns per unit of both downside and upside risk. Bitcoin recorded a 117 percent increase over the course of two years while tech stocks came in a close second with a 116 percent rise.

Source: Binance Research

Source: Binance Research

The comparison between Bitcoin and other assets was also raised by Pension Partners’ Charles Bilello, who tweeted that Bitcoin offered a higher yield than government bonds in 18 countries.





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Bitcoin

Bitcoin surges by ~7% in under an hour; Has the rally finished correcting?

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Bitcoin surges by ~7% in under an hour; Has the rally finished correcting?
Source: Unsplash

Bitcoin’s price rally in a parabolic curve led most of the community to believe that this was the bull rally, however, the correction of this surge was due, which began on May 16.

The correction wave, as expected by many prominent traders was approximately 30-40%, which would put the price of Bitcoin $5,000 to $5,800. However, the correction seems to have finished as the price of Bitcoin surged by more than 7% in less than an hour.

Source: TradingView

The market cap of Bitcoin, at press time, was $136 billion and most the volume for Bitcoin was coming from BitMEX exchange via trading BTC/USD derivatives. BitMEX contributed a total of $3.38 billion in terms of trading volume, which is 12% of the total trading volume.



A Twitter user @DoveyWan suggested a head and shoulder pattern for Bitcoin:

CNBC suggested something similar, however, the pattern doesn’t seem to be holding. A Twitter user @thecryptomonk, tweeted:





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