It appears as if crypto winter is long gone thanks to the price of Bitcoin moving up 2.5x since April, dragging the altcoin markets with it. The rally hasn’t ended there, Bitcoin is up a whopping 125.6% so far in 2019 and it’s showing no signs of slowing down. In the same vein, stock markets are surging higher than ever before, breaking all kinds of records. However, average stock prices are up around 12% so far this year, and while that sounds like a great return for traditional investors, Bitcoin’s massive gains simply blow that out of the water.
Diversify Your Portfolio with Bitcoin
Any good investor knows that diversification is key to success – never put all your eggs in one basket as the old adage goes. Thanks to platforms like Fidelity, Bakkt, and JP Morgan all opening crypto trading desks, it’s now easier than ever to add Bitcoin exposure in your portfolio. Even if you allocate 1% of your portfolio value to Bitcoin, the returns will help put your portfolio back in the green should your trusty stocks take a small tumble. On top of acting as a good hedge against traditional stock markets, Bitcoin also doesn’t appear to be suffering from investor fatigue, meaning the price will always bounce back and go higher. This could play well into the hands of investors who are looking to add a wildcard to their portfolio for bumper gains.
The Pomp is Keeping Tabs
Anthony “Pomp” Pompliano is far and away one of the most influential people in the cryptosphere, as such he is keeping close tabs on the performance of Bitcoin versus the stock market. In a Tweet earlier this month, he pointed out the fact that Bitcoin is outperforming the stock market by a country mile. With that in mind, his advice of engaging in the Bitcoin market certainly has some weight to it.
Stocks are up 12% in 2019.
Bitcoin is up 111% in 2019.#GetOffZero and get in the game. ?— Pomp ? (@APompliano) May 24, 2019
To the Moon? Maybe!
Bitcoin has surged past key resistance levels and is looking unstoppable as it zooms past the $9,000 mark. While we might well see a slight retracement, it will bounce back and continue its upward journey beyond $10,000 in no time at all. A Bitcoin price surge has been looming for weeks, and it looks like it’s finally here. Now could be a great time for investors to jump into Bitcoin, especially if their portfolios are looking a little ropey.
Bitcoin has the potential to turn any losses the stock market might throw at you into huge gains. No fund manager in the world could create a fund that outperforms Bitcoin in a bullish cycle, and it looks like we’re in the beginning phase of that market. If you’re not already investing in Bitcoin, it’s well worth adding a little to your portfolio – just to be safe.
