Stating that crypto is outperforming the stock market is not the right thing to do with BTC being down 60% since its ATH and DJ losing slightly more than 20% in the same period. However, the recent instability in the global economy created a very peculiar situation where many huge investors had to move funds around quite frequently.
The strengthening of the US dollar is a bad thing for the stock market since the inability to sell more goods on the international market will reduce earnings and create a situation where stocks are doing even worse than right now.
Bitcoin is doing surprisingly well
BTC has been hovering above the $19 — $20K level for over two weeks now allowing many to think that the asset is stable. While it is not ready for a massive bull run in the nearest future, the way crypto is holding amidst the global recession is quite reassuring for long-term investors.
Bitcoin seems to be a good bet for people who want to hedge against inflation in the US. The same is happening in Sub-Saharan Africa, South America, and Asia.
Europe is not so keen on adopting Bitcoin just yet. While many countries are rolling out interesting policies and trying to be friendly crypto investors, citizens of nations with some of the best conditions for crypto users are not as interested as those living in countries with failing economies. In many ways, Europeans still believe that an inevitable crisis can be avoided.
With opinions dividing the global community of investors, Bitcoin is still one of the most stable assets, at least, right now. It all may change tomorrow, but the last week’s data indicates that BTC is performing better than the stock market.
Should you start loading up on crypto?
As always, do your research and focus on diversifying your assets if you can afford to. Cryptocurrencies are doing just fine in these trying times, but you should never put all your eggs in one basket. Today, BTC is outperforming Dow Jones. Tomorrow, the situation may turn around completely.