Global markets have witnessed huge volatility levels over the past few months, with all the major stock market indices having seen strong downward pressure that led them to record losses comparable to a recession in the short run of a few weeks. .
During March the stock market was more volatile than Bitcoin!
This turbulence in traditional markets triggered an interesting phenomenon that many investors did not expect: the stock market was more volatile than Bitcoin during the month of March.
This surprising statistic could eventually rekindle the narrative about the "crypto sector as a safe haven" to which many Investors had joined in past years, but this will only be confirmed if this trend is able to continue for a long period of time.
Cryptocurrencies and the stock market both face a difficult march as volatility rages
It's no secret that March has been a tough month for virtually every major market, with Bitcoin plummeting from its mid-February highs to lows of $ 3.800 just a couple of weeks ago, while the S & P500 declined from its late February highs of $ 3.400. 2.230 at recent lows of XNUMX points.
The far-reaching nature of this turbulence has had repercussions on practically all major markets, and even traditional safe-haven goods such as gold and silver have struggled to gain momentum upwards.
This downward trend was mainly driven by the COVID-19 pandemic, which was a "black swan" event that occurred abruptly, disrupting supply chains and bringing the economies of many leading countries to virtual stops.
The stock market was able to record a slight hike from the latest lows, which is the result of the US $ 2 trillion stimulus package just released. This package is expected to help boost the nation's economy while keeping troubled businesses and Americans afloat. The crypto sector, on the other hand, cannot count on any support provided by governments, but is proving to stand on its own legs.
The data reveals that Bitcoin is less volatile than the S&P 500
An interesting event that has occurred following this recent global turmoil is that Bitcoin in March was less volatile than the S&P 500 - despite the massive initial decline of the cryptocurrency and the subsequent rebound seen a couple of weeks ago.
Nathaniel Whittemore, a crypto industry expert, summarized this data in a recent tweet, stating, “Here's a damn statistic: The S & P500 was officially MORE VOLATILE than bitcoin this month.
According to the Fed, S&P's historic 30-day volatility was 200% (compared to an average of 27%). Bitcoin was at 138% (from an average of 65%). " If this trend continues into the future, it is possible that the 'safe haven' narrative hovering around Bitcoin and cryptocurrencies will resurface, this time reinforced by data.