Many people argue that Bitcoin is most useful as a safe haven compared to the stock market. Corrections do not normally take place in these markets.
In fact, according to CNBC, the S&P 500 fell 1.7% to 4,357, its worst daily performance since May 12, just two days ago.
Bitcoins, share on Monday they all fell sharply | The source: CNBC
Comparing these two markets, on-chain analyst Willy Woo recently discussed the same thing in a series of tweets. Referring to the cuts in both, Woo claims:
“It seems speculators overreact if you ask me.”
Why? The following table can give us an explanation.
Bitcoin price vs.&P500 | The source: Twitter
Meanwhile, long-term investors stayed undeterred and stuck with HODL. Some even bought more.
“Since long-term investors are not careful, they keep buying as if nothing had happened. Sooner or later there will be a supply shortage that will lead to a rise in prices. “
In addition, he explained his belief in the largest cryptocurrency in the world. Like many others, Woo remains optimistic:
“Even when stocks were sold, BTC has proven that it will act as a safe haven during the White Swan’s COVID event. After short-term BTC investors were sold on the run to safety, long-term investors were quick to buy in, even as the stock plummeted further. This time the investors didn’t even sell. “
The analyst further proves his point by sharing the diagram below.
Bitcoin Price vs. S & P500 | The source: Twitter
However, not everyone agrees with Woo on this issue. One of his followers, for example, was quick shown the:
“It is very difficult to be a safe repository.”
Bitcoin fell below $ 40,000 for the first time in 6 weeks a few days ago. While it still outperforms the S&P 500, gold, and other indices for now, it’s worth checking the chart below for more perspectives.
The source: Inflationchart.com
A recent tweet from Ecoinometrics also quickly points out the price of gold, S & P500, and crude oil in Bitcoin (as of September 20).
https://twitter.com/ecoinometrics/status/1440375278744883201?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
Bitcoin Rating”
September 20, 2021
Gold: 0.041 BTC per ounce
SP500: 0.1 BTC
Crude oil: 162,000 sats per barrel “
However, it should be noted that Bitcoin has also suffered from recent economic uncertainties. It’s down 32% from its high of around $ 64,000 in April.
The above figure is well above the 3% of the S&P 500. This will only reinforce those who believe that Bitcoin is more volatile than traditional assets despite its decline in coins with the S&P 500 index.
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