With Global Financial Markets in Turmoil, Bitcoin Only “Asset Class” Performing Well – Marc Faber

Famed Swiss investor and market guru Marc Faber said yesterday that bitcoin is the only asset class in global financial markets to be performing well.

Faber told CNBC yesterday that “…all asset classes have performed poorly, with the exception of Bitcoin.”

On Wednesday, Faber made similar comments on Bloomberg:

..the dismal performance of commodities and also of equities last year, when you talk about doom and gloom for this year 2016, I have to point out that in 2015, with the exception of people that held bitcoin, the performance of all asset classes has been poor.

The Swiss investor believes that the US economy is weakening much more than what is perceived, and that, although there is trouble in its own economy, China is being incorrectly blamed for the US economy’s own weaknesses.

Nonetheless, it is evident from both chart comparisons over three month and the last five days that bitcoin is definitely outperforming the Dow Jones, Nasdaq and S&P indices.

Bitcoin Price Compared to Dow, Nasdaq, S&P over Three Months

 

Bitcoin Price Compared to Dow, Nasdaq, S&P over Five Days

bitcoin vs dji nd sp 5 days

Courtesy of http://finance.yahoo.com

China’s Shanghai and Shenzhen exchanges have experienced sharp falls in recent days, forcing the Beijing government to shut down its market circuit breaker. According analysts, the circuit breaker has actually been exacerbating market volatility and drawing liquidity out of the country‘s stock market as a result of its defective design. Some observers, like Zero Hedge analyst Tyler Durden, believe that falling stock markets and the devaluing yuan are resulting in significant capital flight out of China into bitcoin.

Some market watchers, like Durden and Visual Capitalist, have declared that bitcoin was the best performing currency of 2015. The Money Project, a collaboration between Visual Capitalist and Texas Precious Metals, produced a market visualization of bitcoin’s performance, contrasting it with other world currencies. Bitcoin’s rally at the end of the year actually resulted in it overtaking the US Dollar by a significant 35% by the end of the year.

Bitcoin Outperforms All Currencies in 2015

btc dollar major currencies compare

Visualization courtesy of the Money Project

Bitcoin is no stranger to extreme volatility however. For its first year in the mainstream in 2013, the cryptocurrency rose 5.429% to majorly surpassing other currencies for that year. In 2014, it became the world’s worst performing currency losing 56% of its value.

bitcoin volatility

Visualization courtesy of the Money Project