The Bitcoin price dropped over the first quarter of 2020 amid the worldwide asset collapse. But it didn’t fall nearly as much as the major US stock market benchmarks. From January 2, 2020 (the year’s first day of trading on the New York Stock Exchange) through April 1, 2020, the S&P 500 Index capitulated some 23 percent. Meanwhile, the Dow Jones Industrial Average crashed over 26 percent.
Bitcoin Price Performed Better
But the Bitcoin price fell only 11.70 percent in the first quarter of 2020. Which of the three would you rather have been holding at the beginning of the securities rout? You’d have done best with gold, for which the spot price increased 4.5% in Q1. But between the stocks CNBC and Wall Street perma-bulls perpetually flog to investors, and Bitcoin, there’s no contest.
Any investor who saw a mile of froth sitting on top of stock valuations as the benchmarks continued hitting one all-time record high after another while households, corporations, the government, and other countries ran up record debts; and jumped ship from equities to Bitcoin as the ’20s kicked off with a roar– could have cut their losses from this bear market in half.
Not Enough For Mainstream Media
But that still isn’t enough for CNBC. The Bitcoin price outperforms any other security over the past decade, and they still view it with derision. And publish scary headlines about how risky and unproven and sketchy Bitcoin is. The Bitcoin price bubble collapsed in 2017, and the establishment financiers and their media outlets dance on its grave.
Although if you dollar cost averaged an investment in the crypto from the day, it peaked in December 2017, and crashed all through the crypto winter of 2018, and kept buying and holding bitcoin to the present day, you would have outperformed the same exposure to the Dow Jones over the same period.
Then the worst economic crash in maybe a century hits, and Bitcoin markedly outperforms equities. But CNBC still can’t run a story headlined, “Here’s how much bitcoin beat the Dow and S&P 500 in the first quarter,” without saying:
“Bitcoin has fallen less than major U.S. equity indices in the first quarter but still hasn’t proven it can act as a ‘safe haven’ in times of market turmoil.”
What gives? If you get your financial news from CNBC, take it with a handful of salt. This network will interview big hedge fund analysts every day who talk about their book. They tell you to buy right up until the market crashes. That’s good for Wall Street but bad for individual investors who don’t know any better. Looking at the actual figures and ignoring all the “analysis” is the prudent way for the intelligent investor to proceed. Bitcoin has proven it’s a safe haven. The charts don’t lie.
* Disclaimer: This article is the opinion of the author and does not represent professional financial or investing advice.