Bitcoin tends to outperform gold and stocks after global shocks, Mercado Bitcoin finds
Why it matters: Bitcoin's consistent outperformance post-shocks could redefine its role as a crisis hedge for investors.
- Mercado Bitcoin's study found that Bitcoin posted stronger returns than gold and the S&P 500 in every 60-day window following global economic or geopolitical shocks.
- Bitcoin jumped 24% after U.S. tariff escalations in April last year, significantly outperforming gold's 8% rise and the S&P 500's 4% gain.
- Rony Szuster, head of research at Mercado Bitcoin, cautioned against judging Bitcoin's performance too soon after a crisis, noting initial dips are common as investors seek liquidity.
- Bitcoin rose 21% at the onset of the COVID-19 pandemic in March 2020, while other assets lagged.
- Bitcoin has risen over 2.2% during the current U.S.-Iran conflict, from $65,800 to $67,300, while gold dropped around 11% and the S&P 500 lost 4.4%.
A Mercado Bitcoin study reveals that Bitcoin consistently outperforms traditional assets like gold and the S&P 500 in the 60 days following global economic or geopolitical shocks, despite its inherent volatility. This pattern held true after events such as U.S. tariff escalations and the COVID-19 pandemic, with Bitcoin showing stronger returns in each period analyzed.
