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You would’ve been better off holding Bitcoin than S&P, EUR or GBP during the recent wipe off



You would have been better off holding Bitcoin than S&P, EUR or GBP during recent wipe off
Source: Unsplash

Would you have held your assets in Bitcoin or in stocks during the recent sell-off?

Bitcoin has been compared to the stock markets for long now and its uncorrelated narrative came under attack recently. Although BTC and the S&P were at an all-time high correlation, the connection seems to be severing slowly. As the stock market continues to tumble, Bitcoin seems to be holding up.

Trying to alleviate this pain are the central banks across the world doing everything from cutting interest rates to introducing stimulus packages. But the stock market doesn’t seem to stop collapsing.

As a result of the stimulus, the Fed’s balance sheet has soared to a whopping $4.6 trillion, a new all-time high. The balance sheet has increased from $3.7 trillion to $4.6 trillion in the last 7 months. According to reports yesterday, the Fed plans to conduct a $1 trillion overnight repo operations for the rest of the month.

With so much at stake, choosing between Bitcoin and stocks, as some would argue, could pose quite the dilemma.

Where does Bitcoin stand

In hindsight, the first two months of 2020 was fairly ‘nice’ to Bitcoin. The price of Bitcoin year-to-date [YTD] is down by 13%.

The YTD performance of Bitcoin stands at the third place when compared to other currencies. JPYUSD takes the first spot with the least drop in its value of -1.08%, following this is CNYUSD with -1.62% drop.

So, a better way to put this would be that it would have been safer for an investor to hold BTCUSD than EURUSD, KRWUSD, GBPUSD, etc.

Furthermore, at the time of writing, Bitcoin was down by 13.7% YTD while the S&P suffered a 27% decline. However, in the last month alone, S&P [-21.98%] is doing much better than Bitcoin [-29.23%].

To put it all in perspective, Bitcoin was the safest bet in comparison to S&P, EUR, GBP, KRW, etc since the start of 2020.

Where to Invest?

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Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.