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.
3% BTC allocation generating 12% CAGR over 36 months is the stat that should have ended every traditional advisor argument in 2019. most of them still werent listening
Petros V. my CFA friend called BTC a speculative toy at $8k in june 2019. that 3% allocation math would have saved his clients a lot of regret
60% in a single month and people still call it a bubble. Delphi has been spot on with their calls this cycle.
delphi also called the dec 2018 bottom within $200. their on-chain work has been consistently ahead of the curve
macro_salt their dec 2018 call was impressive but the 3% allocation CAGR stat was the real catalyst. funds needed something to show LPs and delphi gave them the math
60% in May 2019 from the $3,400 december bottom. delphi was one of the few firms calling the floor while everyone else was declaring crypto dead
Aurel P. the 3% allocation at 12% CAGR math was what got institutions through the door. delphi gave them the powerpoint slide they needed
3 percent allocation generating 12 percent CAGR was the slide that got every family office interested. Delphi knew their audience
the 3% allocation generating 12% CAGR stat is what institutional money managers needed to hear. expect more fund flows after this report.
^ exactly. the correlation to trade war hedging is what makes this different from 2017. real capital rotating in, not just retail fomo.
trade war hedging narrative plus actual institutional research. delphi was one of the first firms that traditional finance people took seriously
trade_wars_btc the trade war hedging thesis aged perfectly. BTC correlated with yuan devaluation during that period and delphi was one of the few firms actually tracking it on-chain
the CAGR stat is nice on paper but try telling a fund manager to put 3% into something that just dropped 10% in a day. the volatility is the real barrier
Marco D. fund managers dont allocate based on a single days drawdown. the 12 percent CAGR over 36 months is what gets an IC meeting, not intraday volatility
trade_wars_btc the yuan devaluation correlation was the real signal most people missed. delphi tracked wallet inflows from HK exchanges and saw the rotation weeks before the mainstream caught on
60 percent in one month and people still called it a bubble at 8k. Delphi was early but they were right
Pavel H. everyone called it a bubble at 8k then watched it hit 60k two years later. same people same takes every cycle
3 percent allocation generating 12 percent CAGR over 3 years. try telling that to your wealth manager in 2019 lol
60 percent in May 2019 off the 3400 dec 2018 bottom. delphi called both ends. most analysts were still bearish at 4k
btc_cagr_ calling the 3400 bottom was easy in hindsight. the hard part was buying when everyone else was calling for 1000
3 percent BTC allocation generating 12pct CAGR over 36 months is the stat that got every CIO interested. Delphi knew exactly what they were doing with that framing
Junko S. the 12pct CAGR framing was designed for pitch decks not portfolios. 3pct allocation moves the needle barely when your base is a 60/40
delphi called the bottom and the top within 6 months. would love to see their track record on calls that didnt work out
Delphi called the 3400 bottom within 200 dollars. everyone else was screaming 1000. on-chain analysis beat vibes for once
60 percent in May from a 3400 December bottom. Delphi called both ends while the rest of the industry was writing obituaries. credit where its due