With all fundamental analysis aside, the price action of Bitcoin is pretty similar to early days of the S&P 500.
From 1877 to 1929 the S&P 500 rose 1000%, then was followed by an 84% correction during the Great Depression.
Since the Great Depression, the S&P has risen an additional 62,000%.
Bitcoin's previous price action followed a similar pattern, 12,000% increase followed by an 84% correction.
Another point that I also see made frequently is the time frame in which Bitcoin moves. An important factor to consider here is the amount of time stocks are available to trade. (Thanks to @MicroNimmi on Telegram for pointing this out) Not including after hours trading, the US stock markets are open roughly 1,500-2,000 hours per year. Bitcoin markets never close so they are traded about 8700 hours per year. This means each day in crypto markets is roughly 4 days in the stock market.
Even with trading hours factored in, yes, Bitcoin is extremely volatile but it is only 10 years old. Volatility of almost any emerging market is typically high.
Overall this comparison does not tell anything about the future of Bitcoin.... just food for thought. I hope this helps put things into perspective.
----------------------------------------------------------------------------------------------------------------------------------------------------
Join the price/analysis discussion with us in our free telegram group!
t.me/bvcryptoclub
Message @bvcc_invite_bot on telegram for access to the premium channel and Zobot Altcoin market scanner.
From 1877 to 1929 the S&P 500 rose 1000%, then was followed by an 84% correction during the Great Depression.
Since the Great Depression, the S&P has risen an additional 62,000%.
Bitcoin's previous price action followed a similar pattern, 12,000% increase followed by an 84% correction.
Another point that I also see made frequently is the time frame in which Bitcoin moves. An important factor to consider here is the amount of time stocks are available to trade. (Thanks to @MicroNimmi on Telegram for pointing this out) Not including after hours trading, the US stock markets are open roughly 1,500-2,000 hours per year. Bitcoin markets never close so they are traded about 8700 hours per year. This means each day in crypto markets is roughly 4 days in the stock market.
Even with trading hours factored in, yes, Bitcoin is extremely volatile but it is only 10 years old. Volatility of almost any emerging market is typically high.
Overall this comparison does not tell anything about the future of Bitcoin.... just food for thought. I hope this helps put things into perspective.
----------------------------------------------------------------------------------------------------------------------------------------------------
Join the price/analysis discussion with us in our free telegram group!
t.me/bvcryptoclub
Message @bvcc_invite_bot on telegram for access to the premium channel and Zobot Altcoin market scanner.