In the latest Bitcoin news, we are focusing on the performance of cryptocurrencies compared to stock markets. As all of these classes enter a bear market, some believe that cryptocurrencies and Bitcoin have a chance of becoming the best performing asset class next year.
As one self-proclaimed ex-equities portfolio manager named Travis King who is now heading up the cryptocurrency asset management firm Ikigai tweeted:
Crypto has never existed during a bear market in traditional assets.
BTC was birthed at the very beginning of the largest monetary experiment ever- globally coordinated QE. Ending QE is causing pain
There is a significant chance Crypto is the best performing asset class in 2019 pic.twitter.com/vIdKTrm5sV
— Travis Kling (@Travis_Kling) December 23, 2018
The US Federal Reserve initiated the quantitative easing (QE) ten years ago where it lowered the interest rates and bought trillions of dollars worth of government bonds and mortgage-backed securities. This move potentially saved the US from a major depression.
Right now, the main question is whether this situation could inspire investors to choose digital instead of fiat. According to Kling:
“It would make complete sense to me that crypto would bottom out months before traditional asset classes.”
Obviously, there are a lot of mixed opinions on the market. While some believe that crypto could continue to fall and be “the worst” performing asset class out of a global economy of bad performers, others think that believers in the new asset class will lead the charge and spur a reversal of the market.
Meanwhile, the reversal trend has brought more than $30 billion to the crypto market as Bitcoin recovers.
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