Despite its recent crash, the Bitcoin price is still doing better than major US stock indices.
Bitcoin has fallen less than major US equity indices in the first quarter of 2020, as the Dow Jones, S&P 500 and Nasdaq were dealt heavy blows this year.
Starting the year at $7,182, Bitcoin experienced a month of bullish momentum, pushing it up to almost $10,400 by mid-February. However, like practically all markets, Bitcoin began to take a turn for the worst and briefly fell below $5,000 in mid-March before recovering back to $6,355 today. In total, Bitcoin is down just 10% in Q1 2020.
US equities have fared even worse this year. Since the start of the year, the Dow Jones and the S&P 500 witnessed their worst first-quarter loss in history, after the Dow lost 23% of its value so far in 2020, while the S&P 500 lost 20%. Nasdaq performed slightly better, losing 14% of its value in the first quarter of 2020.
The cause behind the recent sell-off is no secret. Shortly after the World Health Organization declared the recent coronavirus outbreak a pandemic, almost all financial markets were sent tumbling, with most stocks, cryptocurrencies, and commodities suffering shattering losses. Oil is at its lowest value since 2002.
While the US government has approved a $6 trillion stimulus package, including a $1,200 cheque to every low or middle-income American adult, the market has not fully recovered. Some worry that the bill will simply devalue the dollar and that the markets won’t recover.
“In 2008 the dollar rallied from a record low before the Fed showed its cards with QE. The dollar then fell sharply until the Fed bluffed the QE game was over. This time the Fed was even quicker to reveal an even weaker hand of never-ending QE. Now it’s game over for the dollar,” tweeted Peter Schiff, CEO of Euro Pacific Capital.
In 2008 the dollar rallied from a record low before the Fed showed its cards with QE. The dollar then fell sharply until the Fed bluffed the QE game was over. This time the Fed was even quicker to reveal an even weaker hand of never-ending QE. Now it's game over for the dollar.
— Peter Schiff (@PeterSchiff) March 26, 2020
Not all markets have suffered though. Gold is one of a handful of markets that is still showing gains this year, after increasing four percent in the first quarter.
Author: Daniel Phillips
Source: Decrypt: Bitcoin outperforms Dow and S&P 500 in first quarter