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The global crisis changes the cards of the market, but rarely in the expected direction. While investors instinctively turn to gold or defensive assets, Mercado Bitcoin’s study reveals a counterintuitive reality: Bitcoin outperforms after major shocks. Beyond its initial volatility, the flagship cryptocurrency is following a unique trajectory that challenges traditional reflexes. This dynamic, observed during several recent episodes, could well define the market interpretation in times of instability.
In short
- Bitcoin outperforms gold and stocks after global crises, study reveals.
- Numerical data shows significant Bitcoin gains in 60 days after major shocks.
- Markets initially react with a large drop associated with the need for liquidity.
- Bitcoin follows a different trajectory and has a stronger rebound than traditional assets.
Bitcoin Outperforms Traditional Assets After Upheaval
A study by the Mercado Bitcoin Group reveals a recurring trend: after major events such as the COVID-19 pandemic or US trade tensions, Bitcoin significantly outperforms traditional assets.
Data observed over a 60-day period show significant differences:
- After US tariffs announced: Bitcoin +24%, against gold +8% and S&P 500 +4%;
- During the initial shock of COVID-19: Bitcoin +21%, with other assets underperforming.
This behavior does not occur immediately. The study points out that during the initial stages of a crisis, all assets are under downward pressure due to the widespread need for liquidity. As Rony Szuster, head of research at Mercado Bitcoin, explained: “It’s like watching the first minutes of a movie and already thinking you know the ending”. This observation cautions against hasty interpretations of initial market reactions.
An asset that reflects differently under current stress
The latest data confirms this dynamic in a tense geopolitical context. Bitcoin rose 2.2% amid tensions between the United States and Iran, while gold fell about 11% and the S&P 500 fell 4.4%. This gap highlights Bitcoin’s specific trajectory, different from traditionally perceived safe-haven assets.
Apart from these episodes, the study reminds us that Bitcoin remains the best-performing asset of the last decade despite the ongoing volatility. This uniqueness is based on a two-phase dynamic: an initial decline associated with liquidity constraints, followed by a significant recovery that outperforms other asset classes.
These points open considerations about the evolution of the role of Bitcoin in investment strategies. Rather than an immediate refuge, it could establish itself as a recovery asset, capable of capturing post-crisis phases of upswing. Such a transformation could gradually change investor decisions in the face of the coming global upheaval.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I committed myself to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations, and put into perspective the economic and social issues of this ongoing revolution.
DISCLAIMER OF LIABILITY
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Before making any investment decision, do your own research.
