Just a day before the start of May, bitcoin has declined from its $40,000 mark hovering around $38,000 along with tracking losses in stocks.
Even alternative cryptocurrencies or altcoins did not warp, causing traders concern. For example, Ethereum (ETH) lost over 3% on the 24-hour chart when sidelined by Bitcoin’s loss of over 2% over the same period.
On the other hand, the S&P 500 has also declined where it is expected to trade on the track of its worst start to a year since 1942. Meanwhile, the gold prices seem to be under control holding on to a 6% surge over the past six months.
Bitcoin Price Action So Far in 2022
When we compare the price of Bitcoin with that of the S&P 500 and gold, the performance of the flagship currency looks quite disappointing for the current year due to its underperformance. However, in terms of long-term Treasury bonds, Bitcoin is slightly ahead.
Generally, during times of uncertainty, investors stay away from risky assets like stocks & cryptocurrencies, and when there is an increase in rates, the return in bonds decreases.
On the other hand, there is a positive action of gold and other commodities when inflation rises.
Crypto Market Bleeds
Nevertheless, though the year-to-date returns of the cryptocurrency are leaning towards a negative end, overall the crypto is still up by 16% from its Jan 24 decline of around $33,000 when in comparison with the S&P 500.
Overall, the cryptocurrency market is floating in a sea of red against Bitcoin’s performance. Historically, on average, Bitcoin acquired an average return of 17% in the month of May. Seasonally, even stocks trade heavily, providing buyers with an opportunity to enter the market. However, historical returns do not guarantee future returns.
