Despite the fact that Bitcoin's safe haven status faltered due to its massive decline in March, it still ended up performing much better than US stocks. in the first trimester.
According to CNBC estimates, the Dow posted a 23 percent decline, marking its worst first quarter to date. Meanwhile, BTC is only down 10 percent from where it was trading three months ago.
A brutal quarter for stocks
The US Stock Market He was on a hot streak in early 2020, when new all-time highs apparently became a new norm during the longest-lasting bull market in history.
However, things took a dramatic turn in late February when it became clear that the deadly coronavirus was rapidly spreading across the world. From February 24-28, global stocks suffered their worst sale since the 2008 GFC and entered correction territory.
Things came to a head on March 17 when the Dow sank at 2,997 points (13 percent), its biggest decline since the Black Monday crash of October 1987.
The Dow and other major indices have made a slight recovery, but investors fear the rapid growth in the number of coronavirus infections in the US. can evaporate recent earnings.
Bitcoin also showed its risk side
Bitcoin also started Q1 on a high note by rising to $ 10,500 in mid-February. However, it ended the first quarter in 2020 in the red due to its abysmal price action in March.
That said, there is a good chance that the Q2 may be much better for the leading cryptocurrency given its past performance.
As reported by Crypto Report, the correlation between Bitcoin and stocks recently hit a new high due to the global liquidity constraint. However, Vijay Ayyar de Luno believes that it is still an uncorrelated asset that has not yet been established.
"Bitcoin is still a relatively smaller asset class that is less and less correlated with traditional asset classes and this is in the process of becoming established as we speak," Ayyar said.