IntoTheBlock has recently shared new data related to Bitcoin’s market performance. The report highlights how BTC is holding its position compared to the stock market in adverse economic conditions.
According to the data, the S&P 500 and the Nasdaq experienced a dip of 2.7% and 3.3%, respectively, in one week. The news was startling, seeing how the Federal Reserve decided to keep its interest rate stable.
On the other hand, the BTC price has been maintained at a steady 26,600 dollars for over a month. The largest crypto in the world even outperformed tech stocks and gold in August in terms of volatility.
Lucas Outumuro, the head of research at IntoTheBlock, talked about BTC’s outstanding performance. Outumuro stated that Bitcoin has shown unmatched resilience under stressful macroeconomic conditions.
According to the analytics company, there are three major factors accounting for this resilience.
- ETF Optimism: The market is anticipating a Bitcoin ETF (Exchange Trade Fund) approval from the SEC in the upcoming months.
- Decoupling from USD: BTC’s correlation with the dollar has reached zero. It allows Bitcoin to position itself separately from the currency’s performance.
- Delay from Mt. Gox: Mt. Gox’s repayment plan for distributing 850,000 BTC is facing delays. It has eased the expected selling pressure among traders.
The report also talked about whales and large BTC holders who have been stacking the coin for over a year. Such long-term BTC holders currently own 13.44 million Bitcoins, representing 69% of the supply.
Crypto traders tend to prefer Bitcoin above most cryptocurrencies. This tendency allows BTC to outperform its competition regardless of market sentiment. Traders expect BTC to maintain its resilience and soon break through the concurring 26k dollar threshold.