BIT­COIN OUTPERFORM­S TRA­DI­TIONAL STOCK MAR­KETS

AMBCrypto Weekly - - News -

At press time, dig­i­tal gold’s YTD RoI stands at 36% while that of gold at 12%. Ad­di­tion­ally, the SPX’s YTD RoI is at -3.67%. Oil mar­kets, which suf­fered a mas­sive crash into the neg­a­tive ter­ri­tory have its YTD per­for­mance at -42%. This shows that BTC is out­per­form­ing all the tra­di­tional mar­kets.

Since 2020, Bit­coin has rapidly been gain­ing main­stream adop­tion, es­pe­cially from in­sti­tu­tional in­vestors. The col­lapse of oil mar­kets into the neg­a­tive ter­ri­tory, the un­prece­dented print­ing of fiat cur­ren­cies by cen­tral banks across the world have pushed in­vestors to look for an in­creas­ingly bet­ter hedge. Bit­coin checks most of th­ese boxes and is act­ing as a hedge against the cur­rent sit­u­a­tion.

While the cor­re­la­tion of Bit­coin to stock mar­kets in­creased dur­ing the black swan event it has di­min­ished since then. Fur­ther, Bit­coin is per­form­ing bet­ter than its tra­di­tional coun­ter­parts. As of June 05, BTC’s RoI stands tall at 36% while that of stocks is still in the neg­a­tive zone. Gold still stands as a hedge, how­ever, a bet­ter so­lu­tion is Bit­coin due to its dig­i­tal na­ture.

Look­ing at the per­for­mance of BTC rel­a­tive to the Nas­daq 100 com­pos­ite. Dur­ing 2017, the value was around 1.69, show­ing that BTC per­for­mance was far bet­ter than the 100 com­pa­nies that Nas­daq 100 in­dex tracks.

This ra­tio fell down to 0.7 dur­ing the March crash, how­ever, it has risen above 1, in­di­cat­ing that BTC has not only bro­ken even but is also per­form­ing bet­ter than the stock mar­ket.

An­other con­fir­ma­tion is the ra­tio be­tween BTC and S&P 500 which gives a much broader pic­ture.

A ra­tio higher than 1 in­di­cates BTC dom­i­nat­ing the stock mar­kets, how­ever, any­thing be­low 1 in­di­cates the op­po­site.

With the en­try of Paul Tu­dor Jones, Grayscale buy­ing up BTCs more than its pro­duc­tion limit, and the ris­ing OI from CME’s BTC fu­tures and op­tions mar­kets, the prospect for Bit­coin is noth­ing but bullish.

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