The US Dollar Index (DXY) fell below 100, and gold has skyrocketed to an all-time high as it raises global economic uncertainty. As a result, asset prices were hit. Especially in the technology sector and cryptocurrency.
Bitcoin (BTC) has dropped by around 26% since reaching an all-time high of $109,000 in January. Compared to “magnificent seven” tech stocks, the Bitcoin drawdown is in the middle, indicating growth as an asset.
Tesla (TSLA) is currently performing at its worst, dropping by nearly 50% from its peak. Nvidia (NVDA) continues with a 31% drop. Apple (AAPL), Bitcoin, Meta (Meta), Google (Goog) and Amazon (AMZN) all fell by around 26%, while Microsoft (MSFT) stands out with a relatively modest 18% drawdown.
Emphasizing Bitcoin’s resilience in this current three-month revision is to compare it to a similar period of the 2021 recession between November 2021 and February 2022. At the time, Bitcoin was the worst performance of any major technology name, but Tesla was suffering a lot too.
This comparison highlights how Bitcoin has become more resilient over time as the market cycle progresses and assets continue to mature.