Compared to traditional financial markets, these cryptocurrencies still lead.
Bitcoin still positive for 2019
Bitcoin over 1,000% gain in 5 years.
Despite the selloff in cryptocurrencies, I believe it is important to put things into perspective. First, when you experience the biggest and longest bear market in an instrument’s short existence, you typically don’t just shake that off. It takes time. It will certainly take longer than 9 months. Second, for those who are distraught over the dip Bitcoin and other cryptocurrencies have taken, some of that emotional pain that you experience can be alleviated by taking a bigger look at the performance of Bitcoin – especially when compared to traditional financial markets. Let’s look at the current 2019 return of some of those markets (From January 1st, 2019 to September 25th, 2019)
Oil (WTI) = +23.04%
Gold = +17.38%
Silver = + 15.98%
S&P500 = +18.65%
NASDAQ = +22.38%
DOW = +15.61%
Bitcoin = +118.67%
Ethereum = +29.44%
Litecoin = +91.03%
Total Crypto Market Cap = +70.81%
This is an outstanding year for investors and speculators in almost every single market. Equity markets are on fire, oil is on fire and metals are on fire. Gold and Silver, particularly, are having one of the best years they have had in the past 7 years with gold breaking a 6-year resistance zone and silver breaking a 3-year resistance zone. And if we look at our cryptocurrencies, they’re outperforming all those markets. Bitcoin is still over double what is was at the beginning of the year with Litecoin nearly double it’s 2019 starting value as well. Ethereum is the clear laggard at nearly +30% for the year. That seems weird to say something is lagging when it’s up +30% in a nearly 10-month period. But some may say, “Hey, Bitcoin is still underperforming stocks and metals from the beginning of 2018!” Is it? Could be. But let’s look at the performance of these markets over the last 5 years – from January 1st, 2014 to today.
Oil (WTI) = -40.83%
Gold = +24.86%
Silver = -7.63%
S&P500 = +62.60%
NASDAQ = +117.68%
DOW = +63.87%
Bitcoin = +1045.51%
There are probably two things we can immediately take away from all of the 5-year performance results. The first is that there will probably be a move about how some farmers in North Dakota and some oil companies totally destroyed OPEC. The second is how crazy Bitcoin has outperformed everything. Oil has dropped a staggering -40.83% since January of 2014. Some of you may not remember when oil was trading at $100 a barrel, but it did for almost 3 years (well, between 90 and 114 a barrel). And then we get to the equity markets with the NASDAQ more than doubling its value and almost doubling the performance of the S&P and DJI. And then we see Bitcoin. It’s gained an insane +1,045.51% from January, 2014 to today’s current value (around 8400). I don’t know about you, but that’s a return I am perfectly fine with. I am both a trader and an investor. For me, having an investors mindset is the proper mindset to have with cryptocurrencies. I’m in it for the long haul and adding every month. In order for me to survive the major whipsaws that this market experiences, it is essential to have a very long outlook – because a short term outlook will drive me insane.