Bitcoin vs. S&P 500: “That seems to be an overreaction by speculators …”

Bitcoin price plummeted as investors began to reduce their risk amid the global stock market decline. This is largely due to Evergrande’s debt crisis and regulatory barriers around the world.

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.”

Real-time meaning

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