Bitcoin outperformed Gold by stunning 50 percent in 2019 despite the strong price action of the precious metal and its relation to the moves in the stock market and also to Bitcoin. In our latest bitcoin news, we see how the benchmark cryptocurrency did compare to the precious metal.
This trend could imply that gold will continue to grow in 2020 especially if the macroeconomic trends continue favoring the alternative assets. The S&P 500 is still up by a stunning 27 percent and other leading stock indices also show similar results compared to the previous one. The price action means that the gold declines and the precious metal is still after all largely seen as a hedge against the stock market and other risky equities.
According to GoldPrice.org, Bitcoin (BTC) outperformed the precious metal-gold even with one ounce surging by $200 apiece over the past 12 months marking a gain of 16 percent in one year. Gold’s super-strong year seems abnormal because of its strength in the equity market comes because of the confluence of macro factors such as raging trade wars resulting in billions in tariffs and widespread market uncertainty along with the liquidity injections by the Federal Reserve and other central banks. Mike McGlone who is a senior commodities analyst and strategist at Bloomberg Intelligence noted that this trend will likely going to perform better in 2020. He wrote:
“Gold should shine vs. stocks, particularly if the dollar stops advancing. A declining U.S. equity market is a primary force to pressure the dollar, supporting metals. Mean-reversion risks in the trade-weighted broad dollar near the 2002 and 2016 highs may outweigh further appreciation potential.”
Gold had a good year but Bitcoin rallied by 80 percent in 2019 and outperformed Gold by 55 percent which can be attributed to BTC’s smaller size and the outsized volatility which resulted in bigger gains and losses. McGlone argued that gold’s boom will turn out to be great for Bitcoin which could also outperform the asset in 2020 again. The analyst also suggested in a recent crypto market outlook that if gold starts to rally, bitcoin will follow and it is a matter of time before it breaks the key resistance at $10,000.
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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