Despite the decline in the crypto market, however, the price of Bitcoin performed better in September than the major traditional financial stock indices. Since this summer, prices have tended to show lateralization, which has intensified the argument for a possible low point.
Bitcoin fees are better than traditional finance
At a time when the global economy is flagging, Bitcoin (BTC) can boast of outperforming traditional finance in September. Although its price does not rise, it is nevertheless interesting to note that it is outperforming the main indices, by showing greater resilience over the period analysed.
Therefore, between the high of the day on September 1st and the closing price of the end of the month, the price of the BTC INDEX programs of TradingView decrease 3.84%.
By applying this same method to several global reference indices, the following results are obtained:
- S&P 500 = -9.31%;
- NASDAQ 100 = -10.28%;
- CAC40 = -5.11%;
- DAX = -4.75%.
After much of the year in the case of the fall of Bitcoin and other cryptocurrencies multiplied compared to traditional finance, since September, the asset seems to temporize. It now offers lateralization, supporting the low point scenario at $17,585which level was reached last June:
Figure 1: The price of Bitcoin
The graph above also shows a sharp drop in volatility since the head falls. Arcane Research also notes that seven-day volatility has increased to 1.6%, with a tendency over the past year to rise again after such a low point:
Figure 2: BTC volatility over the past year
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Has the low point finally been found?
If the “Fear and Greed” index on the crypto market is still at a “very fearful” level, we can still note stabilization from the early summer panic :
Figure 3: Cryptocurrency Market Fear and Greed Index
Although some aspects suggest that this famous low point is behind us, however, caution should be exercised. Despite the short-term outperformance against stock market indices, the crypto market is still highly dependent on the sentiment of institutional players.
War and hyperinflation are always features which keeps the markets under pressure. Therefore, the financial analyst Vincent Ganne, who intervenes from Monday to Friday on our private Toaster group, asked to be careful:
“Inflation is still very high. In some countries, it is still accelerating. If it was going to accelerate in the United States in October or November, regardless of whether the American economy creates fewer jobs or the unemployment rate goes up a little, the FED will stay the course. »
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In fact, despite all the good news on the crypto market and the technical progress of the various projects, the past has shown us in recent months dependence on the American economy. Therefore, if the FED chooses to continue its hawkish policy, through new key rate hikes, this lull could not last.
👉 On the same subject – banks would be exposed to only 0.01% to cryptocurrencies, according to the first study on the subject
Source: Arcane Research
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