Bitcoin’s extraordinary performance in the first five months of 2019 has earned it a new title from research firm Delphi Digital: “King of the Asset Class Hill.” The designation, published in the firm’s June 3 market commentary, came as Bitcoin consolidated its position as the best-performing major asset of the year, despite a sharp 10% pullback on the same day that briefly sent prices below $8,000.
TL;DR
- Delphi Digital labeled Bitcoin the “King of the Asset Class Hill” after four consecutive months of gains
- Bitcoin surged over 60% in May 2019, its best monthly return since August 2017
- A 3% BTC allocation in a traditional portfolio would have generated 12% CAGR over 36 months
- BTC outperformed gold, Japanese Yen, crude oil, and global equities in 2019
- Trade war tensions drove investors toward alternative and safe-haven assets
Four Months of Relentless Gains
Bitcoin’s rise through early 2019 was nothing short of remarkable. After bottoming near $3,400 in December 2018 at the depths of the crypto winter, the world’s largest cryptocurrency mounted a sustained recovery that accelerated dramatically in May. The month saw Bitcoin surge more than 60%, pushing from roughly $5,300 to a year-to-date high near $9,100 on May 30 — its strongest monthly performance since the historic bull run of late 2017.
Delphi Digital, a New York-based boutique analysis firm, took note of this momentum. In its latest report, the firm emphasized that Bitcoin had posted four consecutive months of positive returns, a streak that distinguished it from virtually every other major asset class.
“The acceleration in BTC’s performance comes at a time when conventional risk assets, notably global equity markets, continue to see selling pressure,” Delphi Digital analysts wrote. “May’s outperformance has been especially important given the broader weakness across many other asset classes.”
Outperforming Every Major Asset Class
According to CoinMarketCap data from June 3, 2019, Bitcoin was trading at approximately $8,209, with a total market capitalization of about $145.6 billion. Ethereum, the second-largest cryptocurrency, was priced at around $252.61 with a market cap of roughly $26.9 billion. The broader crypto market, while also experiencing a pullback, had seen significant gains throughout the spring.
Delphi Digital’s analysis placed Bitcoin’s 2019 returns ahead of traditional safe-haven assets including gold, the Japanese Yen, and WTI crude oil. Global equity markets, by contrast, had been under pressure from escalating trade tensions between the United States and China, stagnating earnings expectations, and deteriorating sentiment for economic growth in the second half of 2019.
“Contrary to its recent history, Bitcoin has remained largely unaffected by the sell-off in risk assets, though expectations for market volatility are trending higher,” the firm noted. “It is still too early to claim victory yet, but BTC’s uncorrelated nature has so far proved true.”
The Portfolio Case for Bitcoin
Perhaps the most striking finding in Delphi Digital’s report was the firm’s analysis of Bitcoin’s impact on traditional investment portfolios. According to their research, even a small allocation to Bitcoin significantly improved risk-adjusted returns over a three-year period.
“Just a 3-percent allocation (which we acknowledge is still a sizable position for most conservative investors) would have generated a compound annual growth rate of 12 percent over the last 36 months, without raising the portfolio’s volatility or maximum drawdown by much,” Delphi Digital wrote.
This finding was particularly notable because the 36-month window analyzed included Bitcoin’s brutal 2018 bear market, during which the cryptocurrency lost more than 80% of its value from its all-time high near $20,000 in December 2017. Despite that catastrophic decline, a portfolio with even a modest Bitcoin exposure still outperformed a traditional 60/40 stock-bond allocation on a risk-adjusted basis.
A Healthy Correction or the Start of Something Bigger?
The timing of Delphi Digital’s bullish report was somewhat ironic, as June 3 also marked Bitcoin’s sharpest one-day decline in nearly two weeks. The cryptocurrency fell nearly 10% from its recent highs, dropping back below $8,000 for the first time in over a week. The broader Bloomberg Galaxy Crypto Index also retreated, with Ethereum and Litecoin among the altcoins posting losses.
However, market analysts largely viewed the pullback as a natural and expected correction following the parabolic rally of May. Timothy Tam, co-founder and CEO of cryptocurrency research firm CoinFi, described the move as a “healthy retracement” driven by normal market dynamics.
Broader macroeconomic factors were also at play. The sell-off in global equity markets appeared to create some spillover pressure in cryptocurrency markets, with Tam noting “speculative flow” moving through alternative markets. Yet the fundamental drivers of Bitcoin’s 2019 rally — including growing institutional interest, the upcoming halving narrative, and developments like Facebook’s cryptocurrency project — remained firmly intact.
Why This Matters
Delphi Digital’s proclamation of Bitcoin as the “King of the Asset Class Hill” represented a significant milestone in the cryptocurrency’s journey toward mainstream financial acceptance. The report provided data-driven evidence that Bitcoin was not merely a speculative instrument but a legitimate portfolio diversifier with the potential to enhance risk-adjusted returns. For institutional investors sitting on the sidelines, the firm’s analysis offered a compelling case for at least a small allocation. The June 3 price correction, while dramatic, did little to undermine the broader thesis: in a world of trade wars, negative yields, and uncertain growth, Bitcoin had emerged as an unlikely but potent store of value. Whether this represented the beginning of a new bull market or a temporary reprieve remained to be seen, but one thing was clear — Bitcoin was no longer an asset that traditional finance could afford to ignore.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
from $3,400 in december 2018 to $9,100 by may 2019. people forget how brutal that recovery was. 60% in a single month
3% BTC allocation generating 12% CAGR over 36 months is the kind of stat that gets traditional portfolio managers nervous
outperforming gold, yen, crude oil AND global equities during trade war escalation. the uncorrelated asset narrative was born here
four consecutive months of positive returns while equities sold off. Delphi called it right, king of the hill was deserved
meanwhile ETH sitting at $252. BTC was eating the entire market that spring