Key facts:
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Bitcoin‘s 2-year performance outperforms SPX’s 10-year performance.
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For six months now, BTC has been in a corrective sideways period.
Beyond the price correction experienced by Bitcoin (BTC), its performance continues to stand out compared to other assets over the last year. It has registered an increase in this period three times greater than that of gold and the S&P 500 (SPX). The latter is the index that compiles the shares of the main 500 companies listed on Wall Street.
Bitcoin shows a 127% increase in 12 months, while gold 29% and SPX 25%This is despite the fact that the latter two are about 2% away from their recently marked historical maximum prices. In the case of the precious metal, this was USD 2,500. last week and the stock market index was at USD 5,600 two months ago.
In contrast, as seen below, bitcoin is trading 20% off the all-time high of $73,700 it hit six months ago. Far from this being a sign of weakness for the market, however, it remains the clear winner of the past year when compared to gold and major stocks.
The price of Bitcoin is shown in orange, the price of gold is shown in purple, and the price of the S&P 500 is shown in dark red. Source: TradingView.
In fact, it is worth noting that It has taken the S&P 500 seven years to experience a rise of more than 120% like bitcoin’s last yearwhile gold has been around for even longer, nine years. This can be seen in the following chart shared by analyst Juan Rodriguez.
Comparison of the price performance of Bitcoin, Gold and S&P 500, on a year-to-date basis. Source: Bitcoin and Cryptos.
To give you an idea of the scale, Rodriguez points out that Bitcoin’s performance over the past two years (194%) exceeds that of the S&P 500 over a decade (182%). Therefore, considers it crucial that its investors do not panic in the face of uncertainty about how this historically bearish month will continue.
Bitcoin enters its worst month in history
As CriptoNoticias has explained, September It has been the month in which the price of bitcoin closed lower for the most years. In addition, markets in general tend to fall during this period, since it is when the northern hemisphere summer ends, a season in which economic activities pause for vacations. However, this tends to give way to periods of bullish recovery.
With the imminent start of autumn, coupled with the reduction in interest rates expected this month in the United States, which is motivating the demand for risk, expectations for the market improve by the end of 2024According to Rodriguez, the falls that bitcoin may have in September will bring good opportunities purchase for investors, in line with its historical upward trend.
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