Bitcoin outperforms SPX, Dow Jones since Sept 1st; Is it still surprising?

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Over the past few weeks, the larger financial markets have been under serious stress as traditional market stocks and cryptos witnessed a month-long drawdown in September. S&P 500, Dow Jones, and now Facebook (after its recent server outrage) bled in the markets, and Bitcoin exhibited a similar picture.

However, the markets have entered Q4 2021, and the largest digital asset has taken charge of recovery once again. While some of the traditional stocks are struggling to bounce back, Bitcoin, alongside the likes of Ethereum, emerged above its September losses.

The decreasing correlation between traditional stocks and crypto has been discussed multiple times over the past couple of years, and right now, it is less surprising to witness crypto perform on its own, here’s why.

Quick Market Analogy between Bitcoin-SPX-Dow Jones

Source: Trading View

Since the beginning of September, S&P 500 dropped 5.22% in stock value to date, while Dow Jones dropped down by 3.84%. Bitcoin was on a similar path but over the past week, it made significant gains and breached above the short-term bearish trend. At press time, Bitcoin was 6.19% up since the beginning of September.

The recovery was reminiscent of the March 2020 period following the black swan event, when Bitcoin led every asset class in the market. It was considered a revolutionary bullish jump during the peak Covid period but it isn’t too surprising anymore.

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