Bitcoin surpassed stock markets in the first quarter, despite a 10 percent price drop

At the end of the first quarter of 2020, the price of Bitcoin fell by 10%, but in comparison with traditional stockWith markets, the first cryptocurrency showed more successful results, CoinDesk writes.

For comparison, during this period the Nikkei 225 index fell by 20%, the FTSE by 14%, and the S&P 500 by 18%, which was its worst performance since 1938.

Bitcoin price chart in the first quarter of 2020

However, the fact that amid the fallThe leading Bitcoin indices, often referred to as a safe haven for investors, also showed a fall, further questioning the allegations of its low correlation with traditional markets.

“It was hasty to declare low correlation[Bitcoin] with 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 blockchain company Arbol CEO and former Wall Street analyst Siddhartha Jha.

The founder of the Alpha5 derivatives exchange, Vishal Shah, agrees with him.

“I believe that 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 microfactors, "– he noted.

At the same time, analysts are not sure when to expect a resumption of market growth.

“Typically, a recession takes place over longer periods of time - at least for two consecutive quarters,”- said Guy Hirsch, managing director of US trading platform eToro.

He also stressed that the blow to the global economy from the coronavirus pandemic was instant and unprecedented, and this could be good news for bitcoin.

“More and more people agree thatthe Fed’s announcement of infinite quantitative easing could push investors to see Bitcoin as a hedge against a depreciating dollar. ”— added Hirsch.

Recall earlier in an interview with ForkLog analyst TonWeiss suggested that measures taken by many central banks to inject additional funds into the economy would not lead to a “giant depression”. In his opinion, in the long run, this will harm those who choose public money, and at the same time play into the hands of bitcoin holders.