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TradingView poll: Bitcoin receives nearly half of the votes for the best investment target of 2020

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TradingView poll: Bitcoin receives nearly half of the votes for the best investment target of 2020

The popular global technical analysis tool platform TradingView initiated a poll on Twitter yesterday, allowing netizens to predict the best-performing investment target in 2020. In the end, Bitcoin received 48.1% of the votes, securing the top spot and becoming the netizens' choice for the best investment target of 2020.

2020 Best Asset Predictions

2020 has been a tumultuous year for the global investment market. The outbreak of COVID-19 in March led to lockdowns worldwide, causing economic activities to halt and production lines to stop, severely impacting the investment market. However, after the Federal Reserve announced unlimited quantitative easing, the market quickly reversed, with the Dow Jones Index recently hitting a historic high. The popular technical analysis platform TradingView launched a voting activity on June 18th, allowing netizens to vote on which investment asset would perform the best in 2020. Options included Bitcoin (BTC), the S&P 500, gold, and other assets. In a poll of 3,380 netizens, Bitcoin emerged as the top choice, receiving nearly half (48.1%) of the votes.

In fact, when comparing the price trends of Bitcoin, the S&P 500, and gold from the beginning of the year to date, it is evident that Bitcoin has outperformed, with a 29.7% increase, making it the best-performing asset so far. Among the three, U.S. stocks have performed the worst, dropping by 3% compared to the beginning of the year.

Source: TradingView

2020 Highly Correlated with U.S. Stocks

It is worth noting that this year marks the first major economic and financial market downturn since the inception of Bitcoin. Bitcoin has survived this crisis and quickly recovered to pre-crash levels. However, unlike the past decade, this year has seen a high correlation between Bitcoin and U.S. stocks (S&P 500), unprecedentedly blurring the lines for Bitcoin, originally regarded as a hedge asset and a tool for hedging against physical assets in the investment market.

While many industry professionals, including well-known Wall Street investors, believe that Bitcoin will serve as a hedge against the inflation caused by the Fed's quantitative easing in the future, if Bitcoin continues to maintain a high correlation with U.S. stocks, it will further challenge the global consensus on Bitcoin as a hedge asset.

Projected to Reach $100,000 in 2021

Interestingly, in addition to netizens being optimistic about Bitcoin's price trend, the anonymous Bitcoin analyst PlanB also has a positive outlook on Bitcoin's future price trend. According to previous reports, the Stock-to-Flow valuation model update released in early June this year indicated that the red dot representing a bull market signal has appeared in the model. This not only suggests that Bitcoin will see the next bull market before 2021 but also indicates that the highest market price for Bitcoin in 2021 could reach $100,000.

Although not everyone agrees with the valuation model's calculation results, there is still a certain level of reference value based on past data and correlations.