#BTCvsMarkets

The performance of Bitcoin compared to traditional markets has been interesting. Despite a $5 trillion sell-off in the stock market, triggered by Trump's tariff policies, Bitcoin maintained its strength, surpassing a price of $82,000. This has sparked discussions about its potential as a digital safe haven or store of value, similar to gold¹.

*Key Comparisons:*

- *Bitcoin vs. Stock Market*: Historically, Bitcoin had little correlation with stocks, but since 2020, it has shown an increasing correlation with high-risk assets such as the S&P 500 and Nasdaq, especially in high liquidity environments.

- *Volatility*: Bitcoin is significantly more volatile than major stock indexes, with daily fluctuations ranging from 5% to 10%, compared to the S&P 500's fluctuations, which range from 1% to 2%.

- *Performance*: The Bitcoin currency has outperformed stocks over the past decade, but with sharp declines, such as an 80% drop in 2018 and a 65% drop in 2022.

*Comparisons to Other Assets:*

- *Gold*: The fixed supply of Bitcoin resembles gold, but it is more portable and divisible. However, gold has a longer history as an inflation hedge, while Bitcoin's record is shorter and more variable.

- *Bonds and Fiat Currencies*: Bitcoin tends to face difficulties in high-interest-rate environments..