On New Year’s Day, Bitcoin made yet another all-high against USD at about $29,620.
But in 2020, USD and several other fiat currencies aren’t the only ones against BTC which made new highs. Even against , the digital asset hit new highs.
Bitcoin made a new all-time record high against gold at the end of the year.
Finally #Bitcoin makes an all time high in real money. The price is over 15 ounces. Happy new year. pic.twitter.com/A6XmlH8NWB
— Charlie Morris (@AtlasPulse) December 31, 2020
2020 has been a roller coaster ride for the world and the asset classes as we saw deep retracement in March. But ever since then, every other asset class has jumped to new highs.
Bitcoin, however, was the clear winner of the year, with 318% gains.
While oil still remains deep in red, -22% returns in 2020, other asset classes rallied but are nowhere even close to Bitcoin’s levels. Private assets were up 9% while equities recorded a 15% uptrend in the year, cash 16%, and bonds 20%.
The precious metal had only 28% year-to-date performance after breaking the ATH in August, which was last seen in 2011. After the consolidation for the last nearly four months, the bullion managed to rise back to $1,900 to mark the end of the year.
Bitcoin, on the other hand, had a wild year. Up 675% from the March lows, and in the past fortnight, it broke several levels in succession without any meaningful pullbacks ever since the uptrend started in Sept.
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This year, things are going to get even more interesting as the rate at which institutions started to trickle in gained speed towards the end of the year will flood in in 2021.
Another exciting and bullish thing is the Bitcoin ETF. After getting rejected every single time over the past couple of years, this week VanEck filed another proposal for a Bitcoin exchange-traded fund (ETF) with the SEC, and this one will also physically hold BTC.
A change in SEC leadership, Jay Clayton not being a chairman anymore, has the cryptocurrency market’s hopes high of approval this time. Also, with all the institutions, big names, corporates, insurance companies, and high net worth individuals jumping on Bitcoin, the odds of regulatory approval have improved.
“All indications from the SEC are that a bitcoin ETF still faces an uphill battle,” said Nate Geraci, president of the ETF Store, an investment advisory firm.
“That VanEck has the confidence to file for a Bitcoin ETF might indicate some shifting viewpoints within the SEC. Clearly, a key to watch as this drama continues unfolding is who President Biden taps as SEC chair.”
In the case of the precious metal, the launch of the gold ETF had a very significant impact on the gold market. The first gold-backed ETF in the US was launched in Nov. 2004. The largest gold ETF, GLD, is one of the biggest funds in terms of the value of the assets it manages.
And the same is expected to happen with the digital gold – Bitcoin, once its ETF gets approved.
An ETF “could be…
Read more:Bitcoin Hits a New All-Time Record High Against the Traditional Safe Haven Gold –