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Performing well: Bloomberg report indicates BTC is weathering the economic storm of COVID-19

Performing well: Bloomberg report indicates BTC is weathering the economic storm of COVID-19
  • Bloomberg has positively commented on the performance of bitcoin and has praised its several economic benefits in comparison to its counterpart, gold. 
  • The report emphasised that the token has not been in the same position as crisis swarms over the traditional market space.

This week, Bloomberg has positively commented on the performance of bitcoin and has praised its several economic benefits in comparison to its counterpart, gold. The report emphasised that the token has not been in the same position as crisis swarms over the traditional market space. 

The report further said that BTC has been somewhat losing the high volatility target that has been associated with it for so long.

According to the report, called the bitcoin maturity league, it shows why the leading crypto coin stands out from the crowd and could become a quasi-currency such as gold in 2020. This would be as a consequence of the ongoing financial crisis brought on by the coronavirus.

Following the last financial crisis in 2008, bitcoin was created and so it’s safe to assume that it knows how to keep itself alive during times like these.

The report goes on to explain that unlike the S & P 500, the BTC prices are not dramatically falling. They further stated:

“Despite Bitcoin annualized volatility that’s averaged about 5x that of the S&P 500 in the past year, the crypto is down only about 5% in 2020 vs. almost 22% for the stock index.”

The report further says that bitcoin has been recovering quite well from the traditional market during such a crisis.

“The first-born crypto is still susceptible to the receding stock-market tide, but is more of a bullish divergent condition, Bitcoin remains up about 9% in 2020 and is hovering near its $8,000 support level, despite about a 20% S&P 500 correction. Our graphic depicts the spiking nature of the correlation between Bitcoin and the S&P 500, notably when equities decline swiftly.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

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