Bitcoin is staying in the eye of the storm even as all markets drop

Posted: 12 March 2020 6:30 pm


All markets are feeling the hurricane, but Bitcoin has stayed in the eye of the storm.

The markets are in free fall right now. Trillions are being wiped off stock value and other asset classes, yet Bitcoin is down 1% in all of this carnage.

We've got the perfect storm right now. If you're a crypto believer, we're really knocking hard on the door. We've got the S&P500 down 4.89% on the close. We've got the ASX 200 down 3.6%. Bitcoin, on the other hand, is down 1%.

Picture not described


This could be the biggest event for the crypto market. I have been in this space for nearly three years and this is the event I have been preparing for.

This is the first GFC where most people around the world already know about Bitcoin. If we're going to see this market do what it has advertised on the box for many years, I really think now would be the time.

When you look how far bitcoin has pulled back from its highs this year, it has fallen (percentage-wise) further than the S&P500. But don't forget that this asset class is known as a low dollar value market cap. It's only $140 billion, while the S&P500 is $3.4 trillion.

The S&P500 is a much bigger and less volatile market than Bitcoin, so Bitcoin volatility is set to be far higher. But dollar-wise, its volatility is still much lower.

The first question is, will the markets continue to crumble?

They might. The US has had an 11-year bull run since the last GFC, and we seemingly learnt nothing from that. Markets have been going back up since then on the back of cheap debt.

If you take a closer look, you'll see that the method of greed of old hasn't stopped. They didn't put the hammer down. Instead, they went deeper. There is more debt out there today, both from a corporate and retail level, than what there was back then.

Debt as a percentage of total GDP.

Green dots are corporate debt, blue dots are government debt and pink dots are household debt.

Picture not described

Debt as a percentage of total GDP.

Green dots are corporate debt, blue dots are government debt and pink dots are household debt.

Picture not described

Debt as a percentage of total GDP.

Green dots are corporate debt, blue dots are government debt and pink dots are household debt.

Picture not described

The second question is if Bitcoin were to hold as other markets crumble, would people take notice?

I think they would. Fund managers are all about the money, and if they buy bonds they risk being too late. Gold still looks okay, but Bitcoin could give them a hedge with gold.

It’s the perfect storm. I don’t have a crystal ball, but it has to be said that Bitcoin is an option, and if it were to see money come in then it will run hard.

TraderCobb is the host of the TraderCobb Crypto Show, and a full-time cryptocurrency trader and educator. He has spent the last 14-years trading and travelling around the world, presenting to over 100,000 people on the way. He has been featured in Forbes, on and on network TV.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Latest cryptocurrency news

Picture: Shutterstock

Get into cryptocurrency

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site