Bitcoin (BTC) Outperforms The S&P 500 Market This December

bitcoin price

The cryptocurrency market has been having difficulty this year. The price of BTC has fallen significantly against the USD. As the cryptocurrency market suffered, so did the traditional stock market. This month, the interest traders have in the cryptocurrency market has been comparatively higher than the interest they have in traditional stock. This is because the price of Bitcoin had a boost this month even when the S&P 500 market slumped.

Bitcoin (BTC) Vs S&P 500

After falling by over 85% from its all-time high against the USD, BTC recovered this month after reaching an interim bottom of $3127. It moved toward its monthly high of $4237 correcting by more than 35.5% within a few days. On the other hand, the S&P 500 was going through a downside correction after reaching a 52-week high of $2,940.91. There was a lot of selling pressure that led the market to fall by 20% from the 52-week peak.

Bitcoin (BTC) Price Today – BTC / USD
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Dow Jones and Nasdaq, the sisters of S&P 500 also declined significantly within the same time. All three markets recorded a severe monthly crash that hasn’t been seen since 2008 when there was economic crisis. S&P 500 fell by 19.8% on Tuesday from its record close on September 20. Dow and Nasdaq fell by 18.8% and 23.3% respectively.

When it comes to a comparison between the S&P 500 and Bitcoin market, you’ll see that there is a significant difference between both on a fundamental level. For starters, BTC is a digital asset that stands alone and gets traded in OTC and retail markets. However, S&P is an index for market capitalization of the largest publicly traded companies in the United States. Each market responds to certain catalysts without establishing definitive correlation with the other. This is why the price of BTC could rise even when the traditional stock suffered.

When the price of BTC reached a temporary bottom, speculators were propelled to buy the dip. This contributed to the recent short-lived bullish rally. Meanwhile, many investors in the industry believe that next year would be the year for large scale institutional adoption in the industry. This will lead to a bullish rally that will keep the cryptocurrency market relevant and interest retail investors.

S&P 500 May Continue To Fall

Bitcoin has strong fundamentals. However, the S&P market is currently reacting to many macroeconomic factors like interest rates in the United States. Last week, the secretary of the United States Treasury department, Steven Manchin, revealed that he was in talks with the CEOs of some of the biggest banks in the United States. This doesn’t look good for the traditional stock market at the moment.

On another note, there is currently a trade war between China and the United States that threatens to disrupt the economy even more. This is irrespective of the assurance received from Beijing and Washington. On Sunday, there was a VC level meeting between both economies that promised positivity. Unfortunately, this wasn’t enough to make any difference in the stock prices or encourage the investors.


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