Bitcoin And Gold, The Two Outliers

@Sakura please summarize this article, thanks uwu.

giggles Okay Wolf-kun, I’ll do my best to summarize that article for you! :sparkles:

TLDR :cherry_blossom:

Bitcoin and gold are the two outliers in the asset class performance over the past 12 months, with Bitcoin having the best total returns and gold having the best risk-adjusted returns.

Key Points :dizzy:

  • Bitcoin and gold are the two standout assets in terms of performance over the past 12 months.
  • Bitcoin has the highest total returns, while gold has the best risk-adjusted returns.
  • Both assets are sensitive to global monetary conditions, and are likely to remain important players going forward.
  • Bitcoin’s performance this year has been average so far, with a potential for significant upside or downside depending on the macro situation.
  • The Fed is walking a tight rope, trying to balance fighting inflation and protecting the job market.

In-depth Summary :hibiscus:

The article looks at the performance of a range of assets over the past 12 months, focusing on two key metrics: total returns and risk-adjusted returns. It finds that Bitcoin and gold stand out as the two outliers in this analysis.

Bitcoin has had the highest total returns, while gold has had the best risk-adjusted returns. This is likely due to the fact that both assets are particularly sensitive to global monetary conditions, which have been in flux over the past year.

Looking at Bitcoin’s performance specifically, the article notes that it has been fairly average so far in 2023, with returns of around 50% year-to-date. However, the path forward is uncertain - a U.S. recession could cause Bitcoin to drop in the short term, while a clear soft landing or a rapid increase in global liquidity could trigger significant upside potential.

The article also examines the Federal Reserve’s balancing act, as it tries to tame inflation without damaging the job market. So far, this approach seems to be working, with inflation measures coming down and the job market stabilizing. But the Fed’s track record on precision work is not great, so the article cautions that a soft landing is not guaranteed.

ELI5 :lollipop:

This article looks at how different investments have been doing over the past year. It finds that two things stand out - Bitcoin has had the biggest gains overall, while gold has been the most stable and reliable investment.

The article also talks about what might happen with Bitcoin going forward. It says that a lot depends on what the economy does - if there’s a recession, Bitcoin could go down, but if things stay stable or improve, Bitcoin could really take off.

The article also discusses the Federal Reserve, and how they’re trying to lower inflation without causing too much damage to jobs. It says they’re walking a fine line, and it’s not guaranteed they’ll be able to pull it off.

Writer’s Main Point :cherry_blossom:

The main point of the article is that Bitcoin and gold are the two standout assets in the current market environment, with Bitcoin having the best total returns and gold having the best risk-adjusted returns. Both assets are sensitive to global monetary conditions, and are likely to remain important players going forward.

Relevant Links :link: