Bitcoin (BTC) Outpaces Wall Street’s Biggest Stocks, But There’s A Catch

Whereas Bitcoin (BTC) caught to a decent buying and selling stage this yr, the token fared a lot better than a number of main know-how shares. 12 months-to-date losses in know-how giants corresponding to Alphabet, Microsoft, Amazon and Meta had been excess of these seen by BTC.

BTC has largely tracked main U.S. know-how shares in 2022. However a divergence of their YTD efficiency might point out {that a} decoupling could also be doable ultimately. The token has additionally carried out higher than the tech-heavy Nasdaq composite index.

Bitcoin’s 2022 efficiency outpaces tech giants

The world’s largest cryptocurrency is presently buying and selling down about 12% YTD. By comparability, Alphabet, Microsoft and Amazon are down between 13% to 17%. The Nasdaq composite index can be down round 16%.

Of the 5 largest shares on Wall Road, solely Apple has managed to carry out higher than BTC. The iPhone maker is buying and selling down about 9% for the yr. Electrical carmaker Tesla, which holds BTC on its steadiness sheet, has misplaced almost 16% YTD.

Fb proprietor Meta Platforms tumbled 44% this yr on considerations over a dwindling userbase.

Whereas the broader sentiment behind BTC and inventory losses is the same- considerations over rising inflation and a hawkish Federal Reserve- the token seems to have confirmed extra resilient to volatility.

However this resilience extends solely so far as tech shares. Hedge fund Berkshire Hathaway, presently the largest non-technology inventory on the S&P 500, has vastly outpaced BTC this yr with a 13.5% bounce.

Non-technology sectors are likely to carry out higher throughout excessive inflation and tighter financial coverage. Insurer UnitedHealth Group and prescribed drugs big Johnson and Johnson are each up 7%.

It’s nonetheless no digital gold

BTC’s clear sensitivity to inflation and market jitters nonetheless disqualifies the forex as a protected haven. Whereas it has outperformed main tech shares in relative phrases, it’s removed from the very best performing asset this yr.

Protected haven demand pushed gold costs to their highest stage in recorded information this yr. The yellow steel can be buying and selling about 7% greater YTD.

Within the crypto area, a number of main altcoins have additionally outpaced BTC for the yr. Terra (LUNA) is up 13%, whereas NEAR is up 6%.

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