A recent study by the Mercado Bitcoin group has shed light on a fascinating phenomenon: bitcoin's tendency to outperform traditional assets after global crises.
Data collected over 60-day periods following major events such as the COVID-19 pandemic and US trade tensions show that bitcoin consistently surpasses gold and stocks in terms of growth. For instance, during the initial COVID-19 shock, bitcoin surged by 21%, while other assets performed lower.
Interestingly, this trend does not emerge immediately. The study notes that all assets initially suffer a decline due to a widespread need for liquidity, making it challenging to predict the market's reaction.
The research also highlights bitcoin's unique trajectory during times of tension. In the recent US-Iran conflict, bitcoin rose by 2.2%, while gold fell by approximately 11% and the S&P 500 declined by 4.4%. This disparity underscores bitcoin's distinct behavior compared to traditionally perceived safe-haven assets.
The study's findings have significant implications for investment strategies. Rather than being an immediate refuge, bitcoin could establish itself as a recovery asset capable of capturing post-crisis upturn phases. This transformation may lead investors to reassess their decisions in the face of upcoming global shocks.