Just a day before the start of May, bitcoin has declined from its $40,000 mark hovering around $38,000 along with tracking losses in stocks.
Even the alternative cryptocurrencies or altcoins have gone undeformed which has worried the traders. For instance, Ethereum (ETH) has lost more than 3% on the 24hrs chart when set aside by Bitcoin’s loss of more than 2% during the same period.
On the other hand, the S&P 500 has also declined where it is expected to trade on the track of its worst start to a year since 1942. Meanwhile, the gold prices seem to be under control holding on to a 6% surge over the past six months.
Bitcoin Price Action So Far In The Year 2022
When we compare Bitcoins price with that of S&P 500 and gold, the flagship currency’s performance looks quite disappointing for the year-to-date due to its underperformance. However, in terms of long-term Treasury bonds Bitcoin is slightly leading.
Generally, during times of uncertainty, investors stay away from risky assets like stocks & cryptocurrencies, and when there is an increase in rates, the return in bonds decreases.
On the flip side, there is a positive action from gold and other commodities when inflation increases.
Crypto Market Bleeds
Nevertheless, though the year-to-date returns of the cryptocurrency are leaning towards a negative end, overall the crypto is still up by 16% from its Jan 24 decline of around $33,000 when in comparison with the S&P 500.
On the whole, the cryptocurrency market is floating in a sea of red in relation to Bitcoin’s performance. Historically, on average Bitcoin has acquired a 17% average return in the month of May. Seasonally, even stocks are trading strong providing buyers an opportunity to enter the market. However, the historical returns are no guarantee for future returns.
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Source: https://coinpedia.org/news/how-will-may-month-be-for-the-crypto-industry/