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George Ma
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Crypto
April 2 13:05

Bitcoin outperformed stock markets Q1 despite a 10% price drop

However, if analysed against traditional stock markets, BTC demostrted much more better results, writes CoinDesk.
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For comparison, during this period, Nikkei 225 index went down by 20%, FTSE by 14%, S&P 500 by 18%, which was the worst indicator in 82 years.
However, if analysed against traditional stock markets, BTC demostrted much more better results, writes CoinDesk.
However, Bitcoin, that was often referred to as a safe bet for investors, also demostrated a decline, further questioning claims of not being correlated with traditional markets.
"It was hasty to claim a low correlation between [Bitcoin] and the stock market. There were periods of high correlation, as in 2018, when in December Bitcoin fell along with stocks. There were other periods when there was an increased correlation with gold," said Arbol CEO and former Wall Street analyst Siddhartha Ja.
Wishal Shah, Alpha5 derivatives exchange founder, agreed with him.
"I believe the correlation in all asset classes is still quite high. This is an eloquent sign of a situation where macro factors are more important than micro factors," he said.
At the same time, analysts can't say exactly when the market will be on the rise.
"Recessions usually take longer periods of time - at least two consecutive quarters," said Guy Hirsch, managing director of eToro's U.S. trading platform.
He also stressed that the coronavirus impact on the global economy was immediate and unprecedented and that may be good news for Bitcoin.
There is a growing consensus that due to the Fed announcing unlimited QE, investors could soon be looking to BTC as an inflation hedge against a depreciating dollar,“ Hirsch added.