Gold and bitcoin have both significantly outperformed equities year-to-date, as perceived uncorrelated assets with an inflation hedge. We examine what this tells us about equity sentiment and perceived risks, as well as the characteristics and drivers of both markets, and ways to gain proxy equity exposure. Gold equities have outperformed physical gold, but bitcoin proxies have significantly lagged BTC, but outperformed the equity market.
Bitcoin (BTC) crisis testing
Bitcoin, the largest cryptocurrency, has performed better this crisis than in 2018, though it’s volatility has remained very high. This performance has boosted it’s claim to be