Beautiful Virgin Islands

Tuesday, Jun 03, 2025

Here's how much bitcoin beat the Dow and S&P 500 in the first quarter

Here's how much bitcoin beat the Dow and S&P 500 in the first quarter

Bitcoin has fallen less than major U.S. equity indices in the first quarter but still hasn't proven it can act as a "safe haven" in times of market turmoil.


Bitcoin fell over 10% in the first quarter of 2020 posting smaller declines than major U.S. stock indexes. The Dow secured its worst first-quarter performance ever, losing more than 23% of its value in the first three months of the year. Meanwhile, gold was up about 4% as investors fled to safer assets.


The cryptocurrency fell over 10% in the first three months of the year.

However, the Dow secured its worst first-quarter performance ever, losing more than 23% of its value in the first quarter of 2020. The S&P 500 fell 20% in the first three months of the year, its worst first quarter ever and its biggest quarterly loss since 2008. The Nasdaq fell more than 14% in the first quarter.

Meanwhile, gold rose about 4% in the first quarter.

Financial markets have had a volatile three months as the coronavirus outbreak turned into a pandemic. Hundreds of thousands of people have been infected around the world, leading to businesses shutting down, major travel restrictions and people staying at home.

The economic impact is expected to be severe and that has led to a huge sell-off in stocks despite monetary policy action from central banks and fiscal stimulus from governments around the world.

Cryptocurrencies saw huge volatility in the first quarter. On March 8, the whole market sold off following a plunge in oil prices. Then on March 12, cryptocurrencies saw $93.5 billion wiped off their value in 24 hours and a 48% crash in the price of bitcoin.

Over the past few years, bitcoin has been likened to “digital gold” and has been seen by some as a safe haven asset to invest in when markets are under pressure. But it hasn’t necessarily played out that way even though it has fallen less than major stock indexes.

Those inside the cryptocurrency industry, however, feel that this could be starting to shift.

“Bitcoin is still a relatively smaller asset class that is increasingly uncorrelated to traditional asset classes and this is in the process of being established as we speak. This is why I believe the current market environment is a big test for Bitcoin and given how young the asset class is, it has actually held up quite well,” Vijay Ayyar, head of business development at cryptocurrency exchange Luno, told CNBC.

He said that while gold is “much more established as as safe haven asset,” bitcoin is “arguably a second choice at this point” given its total user base is smaller but growing.

“Hence, we’re seeing bitcoin lag gold a bit in terms of performance, but one can argue that as we move along in the next few months and years, bitcoin starts to take larger share away from gold and we will see an eventual ‘flippening’ happen, where bitcoin is at, or larger than, the market cap of gold and market movements in bitcoin start to reflect the overall market more accurately,” Ayyar said.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
×