And the Best-Performing Asset of 2020 Is… Bitcoin

Bitcoin is back to being the best-performing asset. There are a few competing theories on how it got there.
bitcoin, btc price
The jury is still out on whether bitcoin is a safe haven, but its performance over the past seven days suggests the worst of the 2020 crash may be over. | Image: REUTERS/Dado Ruvic/Illustration
  • The bitcoin price peaked at $8,970 Wednesday, the highest since early March.
  • An upsurge in trading volume and search interest suggest FOMO-buying is back in play.
  • Bitcoin will undergo its next halving event in roughly 12 days.

Don’t look now, but bitcoin is making a fast approach on $9,000–signaling a new wave of FOMO buying among retail investors.

The largest cryptocurrency by market cap is now up more than 22% year-to-date, overtaking gold as the best-performing asset of 2020.

Bitcoin Price Update

After being rangebound for much of April, bitcoin’s price has been on a steady upward path since last Wednesday. In the span of a week, the cryptocurrency has appreciated 26.5%, or nearly $2,000, according to CoinMarketCap data.

On Wednesday, the price peaked at $8,970, following a 13% gain. At current values, bitcoin’s market capitalization stands at $162.1 billion, accounting for 65% of the overall crypto universe.

bitcoin, btc price
Bull trap or bull market? Bitcoin’s price is up 13% in the last 24 hours. | Chart: TradingView

Bitcoin’s spot volume on verified exchanges has surged to $3.1 billion in the last 24 hours. (“Fake” volumes would have you believe that nearly $60 billion worth of BTC traded hands in the previous 24 hours.)

Bitcoin: The Best-Performing Asset of 2020

The status of bitcoin as a global reserve currency came under fire in late February when the king of cryptocurrencies sold off almost in lockstep with the broader equities market. While the epic flash crash of February and March spared no asset (not even gold), bitcoin’s performance appeared dangerously correlated with stocks–something its proponents vehemently deny.

Gold also suffered a historic flash crash in late February, but this was mainly due to a liquidity event that forced traders to cover losses in other markets. The yellow metal quickly recovered en route to new seven-year highs.

But not bitcoin. The cryptocurrency had been wallowing at sub-$8,000 levels since the second week of March. Even with the latest recovery, BTC remains well below pre-liquidity crisis levels.

Still, that hasn’t stopped bitcoin from reclaiming its rightful place as the top-performing major of 2020. (Before the coronavirus-fueled flash crash, bitcoin jostled with Tesla as 2020’s best-performing asset.)

About seven hours ago, Pantera Capital’s Dan Morehead tweeted:

Dan Morehead tweet
Bitcoin has quickly overtaken gold as the best-performing asset of 2020. The year-to-date gains now stand at just over 22%. | Image: Twitter

Some analysts have attributed the rally to a gradual influx of new investors, while others have pointed to retail FOMO (fear of missing out). Then there are those who proclaim the May 2020 halving event as the biggest driver of adoption.

bitcoin halving countdown
Bitcoin halving countdown. | Source: CoinMarketCap

But not everyone believes bitcoin’s recovery is tied to good fundamentals. Bitcoin may have extended its rally on assurances that the Federal Reserve will do whatever it takes to prop up a sagging economy.

The central bank’s pledge to keep money flowing into capital markets was reiterated Wednesday at the conclusion of the Federal Open Market Committee (FOMC) meeting in Washington.

If bitcoin is as strongly correlated with stocks as it was at the start of the coronacrisis, the latest rally is no reason for bitcoin bulls to cheer. (Nobody is saying bitcoin is correlated with stocks, but its performance in recent months does show stronger correlation.)

Disclaimer: The opinions expressed in this article reflect the author’s opinion and should not be considered investment advice from The author holds bitcoin.

Josiah Wilmoth edited this article for If you see a breach of our Code of Ethics or find a factual, spelling, or grammar error, please contact us.

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Sam Bourgi

Sam Bourgi

Financial Editor of, Sam Bourgi has spent the past decade focused on economics, markets, and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE, Yahoo Finance, and Forbes. Sam is based in Ontario, Canada and can be contacted at or at LinkedIn. Visit his Muck Rack profile here. Sam Bourgi is a Trusted Journalist.

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