Bitcoin Outperforms Largely Wall Street, and Even Gold Since One Year

Take a step back and look at the bigger picture for Bitcoin.

Bitcoin started the year 2020 in the best possible way. After about 40 days in 2020, Bitcoin crossed the $10K threshold again. This crossing which took place on February 9, 2020 allowed Bitcoin to be at +45% since the beginning of the year.

Everybody was obviously bullish at that moment. It is much easier to be positive when the general sentiment in the Bitcoin market is ultra positive. The approach of third Bitcoin Halving added optimism to this hitherto idyllic picture.

Many opponents of Bitcoin even began to recognize Bitcoin’s status as a store of value. And then the coronavirus crisis hit the world from the beginning of March 2020. A liquidity crisis took hold in all liquid markets.

A common reason caused the financial markets, Bitcoin price, and even gold, to fall. Opponents of Bitcoin have regained the upper hand by criticizing Bitcoin’s safe haven status. Some pseudo-experts even went so far as to say that the drop in Bitcoin price at the same time as the fall of Wall Street was proof that Bitcoin was a correlated asset.

As is often the case, these people make the mistake of drawing conclusions over very small periods of time. Bitcoin cannot be said to be correlated to the financial markets simply because the Dow Jones or the S&P 500 fall at the same time as Bitcoin price.

Things are much more complicated. The best thing to do is to step back and see the bigger picture for Bitcoin. If you take this view for a period of one year, you will be surprised to see that Bitcoin outperforms largely Wall Street, and even gold.