Advertisement

How come BTC didn’t surge at the start of the pandemic?

How come BTC didn’t surge at the start of the pandemic?
  • Alex Mashinsky is a believer that bitcoin isn’t correlated enough as an asset for investors to turn to it during crisis. 
  • In an interview, he said that the leading coin didn’t see a significant rise at the start of the pandemic.

Celsius network CEO, Alex Mashinsky is a believer that bitcoin isn’t correlated enough as an asset for investors to turn to it during the current financial crisis. 

In an interview Alex took part in early this week on the 22nd of April, he said that the leading crypto coin didn’t see a significant rise at the start of the pandemic because according to him, “if you take any snippet over the last year, you would see very high correlation [between BTC and] the stock market.”

The correlation of the assets combined with the crisis of the coronavirus could not see bitcoin flooded with attention from institutions. Following the crash on the 12th of March, bitcoin was more correlated with gold rather than stocks but Cryptocurrency in general still has a reputation for volatility.

“Five years ago, BTC looked volatile against stocks [but now it] looks more stable than the stock market — it only moves 2% a day, and the stock market moves 5–10%.”

One of the best performing stocks of the last decade with Netflix with Alex pointing out that bitcoin was still 2000 times better than the “world champion of the stock market”.

On top of this, the CEO further went on to discuss the recent oil crash. The price of oil recently went negative for the first time as many businesses paid traders to take barrels off their hands. Even though this historic event is significant for money, for cryptocurrency and BTC, it had next to no effect.

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

You can share this post!

Advertisement