Following the significant fall in price from back on March 12, when Bitcoin traded below $4,000, the crypto market managed to recover entirely.
At the moment of writing this article, Bitcoin is trading in the green and the digital asset is priced at $9,047.17.
Bitcoin is the most profitable 2020 investment
Equities have suffered massive losses in 2020, and gold was up 7.83 on the year.
Bitcoin is now the most –profitable investment so far, rising 21% from $7,203 at the beginning of 2020.
Bitcoin usually reacts to the massive crashes in the traditional markets, such as the one that took place on March 12.
Now, crypto analyst Scott Melker said that the numbers are showing that BTC is definitely an uncorrelated asset.
“Correlation has a specific definition based on a mathematical formula with regards to finance. By this definition, Bitcoin and the market are not correlated…” he said.
Melker continued and explained that “The idea of ranking correlated assets was developed by Markowitz when he presented Modern Portfolio Theory. Using a math formula, you can compare any 2 assets on a scale of -1 to 1. 1 means correlated – if one asset moves 5%, so will the other. -1 means inversely correlated.”
We recommend that you check out the Daily Hodl’s original article in order to learn what more Melkeer had to say.
Optimistic BTC predictions ahead of the halving
The halving event is just a few days away, and crypto hodlers are holding tight to their cryptos.
There have also been all kinds of optimistic predictions about the price of BTC ahead of this much-awaited event.
One popular such prediction that’s been circulating online is the one claiming that BTC will hit $288k by 2024.
In a new blog post, analyst PlanB said that the latest model is taking into account the trajectory of Bitcoin over the past ten years. Check out the prediction in our previous article.
