BITCOIN EXCEEDS NASDAQ AND S & P 500 IN PERFORMANCE AS OF 2019
The crypto market is often compared to traditional markets such as stocks or raw materials, as far as the capitalization value is concerned. Regarding the performance of the different markets and indices so far in 2019, both the cryptocurrency and bitcoin markets are already up to, or even surpassing, financial indices such as Nasdaq and Standard & Poor's 500 ( S & P 500).
Since the beginning of the second quarter of 2019, the cryptocurrency market has performed comparatively higher than much of the assets, stocks and indices of traditional markets, as it has increased its total value of market capitalization by 40% to take it from USD 127 billion to USD 178 billion according to Coinmarketcap.
If these yields are put in perspective with Nasdaq 100 (NDX), the index in charge of tracking the prices of the top 100 companies in the United States, we can see that it has only had an accumulated growth of 22.79% since the beginning of the year.
On the other hand, the S & P 500, one of the most used investment indexes by a wide variety of financial actors, registers an increase of 17% since the beginning of 2019, less than half of the increase in the crypto market.
Significant corporate markets such as those of Google, and Microsoft have grown an average of 25% in price per share since the beginning of the year, while bitcoin (BTC) has had a performance, in the same period of time of 46%, which it places it at USD 3,277, at USD 5,463, at the time of writing this article.
Although Bitcoin has one of the lowest correlation indexes with respect to traditional financial markets, it can be interpreted that the first quarter of the year was of good performance for both the traditional stock markets and the crypto market, which marks the cessation of pronounced recession periods that had been taking place at the end of 2018.
Not only the stock market highlights bitcoin as a dominant asset, from the point of view of its appreciation, also raw material markets are below in terms of price performance in this 2019. Invesco DB one of the main Indexes of commodity traces that are composed of products such as oil, gasoline, gold, corn and soybeans have had a bullish rebound of only 13%, four times less than the growth of Bitcoin.
However, it is clear that the yields resulting from high peaks in the volatility of prices in markets such as cryptocurrencies produce wider margin benefits but with the consequence of higher risks. However, the integration of indexes such as those from Bitcoin to Nasdaq and the possibility of ETF approval, with several applications under study by the Securities and Exchange Commission of the United States (SEC) in the Throughout the year, it puts BTC in front of the big players of the traditional markets.