Despite Bitcoin’s price performance being compared to traditional stocks, particularly those in the tech sector, new price data over the last month shows a divergence.
According to a report by Forkast, Bitcoin’s 30-day performance has shown a divergence from mirroring traditional stocks. The report comes in response to an article by Forbes, suggesting that Bitcoin is “just another tech stock.”
Citing data compiled by Finbold, the report shows that Bitcoin outperformed the top 6 tech stocks by an average return on investment of just under 16 percent. The stocks represented some of the most popular and profitable tech companies on the market, including Apple, Microsoft, Google, Amazon, Tesla Motors and Facebook.
The report claims Bitcoin’s stunning performance relative to tech stocks over the last thirty days has cast dispersion over the notion that BTC’s correlation with traditional markets is growing.
Jeff Yew, CEO of Monochrome, Australia’s first fund to offer institutional-grade exposure to Bitcoin, said he was not surprised by Bitcoin’s performance.
He told Forkast,
Bitcoin is not trying to compete on tech, it was proposed to be this alternative digital money — a proposition that a large investor base has taken up quite seriously.
Bitcoin’s 30-day performance was particularly strong against Meta (formerly Facebook) following the stock’s 25% single-day price plunge. Meta’s stock tanked in response to a quarterly report showing a decline in daily active users, a first in the platform’s history. An industry watcher told Forkast that a number of investors had moved their funds into treasuries, in addition to crypto, following Meta’s sell-off.
Andrew Sullivan, founder of Asianmarketsense.com, said the recent price plunge for Meta raised questions about the long-term viability of its business model. He noted that advertising revenue was a particular concern and represented a substantial factor in Meta’s price evaluation.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.