Bitcoin tends to outperform gold and stocks after global shocks, Mercado Bitcoin finds

Bitcoin, represented by the symbol BTC, has shown a trend of outperforming traditional safe haven assets like gold in the two months following major global crises, as per a recent analysis by Brazilian crypto exchange Mercado Bitcoin.

The study, conducted by Rony Szuster, head of research at the Latin American crypto platform, examined the performance of Bitcoin, gold, and the S&P 500 in the 60-day periods following economic or geopolitical shocks such as the COVID-19 outbreak and U.S. tariff escalations. In each of the analyzed periods, Bitcoin displayed stronger returns compared to gold and the S&P 500.

For instance, in April last year, following the announcement of sweeping tariffs by the Trump administration, the price of Bitcoin surged by 24% over the subsequent 60 days. In comparison, gold saw an 8% increase, and the S&P 500 gained 4%.

A similar pattern emerged at the onset of the COVID-19 pandemic in March 2020, with Bitcoin experiencing a 21% rise while gold and the S&P 500 lagged behind.

Szuster emphasized the importance of not drawing premature conclusions about Bitcoin’s performance immediately after a crisis. He likened it to watching the beginning of a movie and assuming the ending. During such turbulent times, investors often sell their positions to reduce risk or raise cash, leading to a temporary dip in even defensive assets.

Despite these short-term fluctuations, Bitcoin has consistently demonstrated resilience and bounced back in the aftermath of crises. This trend seems to be continuing in the current U.S.-Iran conflict, where Bitcoin is the only asset showing positive growth, according to Szuster.

Recent data supports this observation. Since the conflict began, Bitcoin has surged by more than 2.2%, reaching around $67,300 at the time of writing. On the other hand, gold, considered a traditional safe haven asset, has declined by approximately 11%, while the S&P 500 has experienced a 4.4% drop, marking the index’s sharpest monthly decline since 2022.

Despite its volatility, Bitcoin has emerged as the top-performing asset over the past decade, showcasing its potential as a valuable investment option.

In conclusion, Bitcoin’s ability to outperform traditional safe haven assets during times of crisis underscores its growing stature in the financial landscape. As global uncertainties persist, Bitcoin continues to prove its resilience and potential as a lucrative investment avenue.