The S&P 500 (SPX) is an index of the top 500 publicly traded companies in the U.S. Stock Market. For this reason, it provides a great indicator of the strength of the American market and economy. It can also be seen as an indication of which direction the wider U.S. Stock Market is going in.
So, when Bitcoin outperforms the SPX as it has just done, immediate questions get asked about the value of crypto versus investments in traditional markets. Let’s dive into the nuts and bolts.
Bitcoin vs the S&P 500
In September, Bitcoin (BTC) lost just 3.08% of its value; opening the month at $20,039 and closing at $19,422. Meanwhile, the SPX declined 8.78% over September, opening at $3,935 and closing at $3,589.
Does this insinuate confidence returning to the crypto market over the stock market? This is a difficult question to ask, particularly with only one month’s positive data. While a monthly close in the trading world is very significant, it is still very speculative to try to assert that Crypto/Bitcoin will continue to outperform stocks over the coming months.
In the grand scheme of things, it is not surprising. Cryptocurrency and blockchain technology continues to make strives in enterprise adoption, with the UFC, Disney and Starbucks, to name just a few, all adopting blockchain-based technologies during this cryptocurrency bear market.
If we look at the history of Bitcoin, each bear market cycle has witnessed between an 80-85% sell-off from BTC’s all-time high. We have seen a 72% sell-off in this crypto bear market to date and with the rising levels of adoption and institutional buy-ins, it is more than likely that the bottom is already in or is not far away. Many analysts believe that BTC will fall out of this bear market before the end of the year which would respect the ‘shortening bear market theory’ – ultimately that each crypto bear market is shorter than the last.
Is now the time to buy Bitcoin or altcoins?
The primary reason traders develop exposure to altcoins is because they offer superior returns to that of Bitcoin. Of course, only certain altcoins end up outperforming BTC, with many losing out to more innovative and exciting projects. For this reason, one of the best trading strategies can be to get in as early as possible on a project, experience the first bullish and hype-driven pump and sell before the wider market catches on. This way you take advantage of the early gains very few others experienced and use the ‘latecomers’ buying pressure to sell and take your profits. But what projects can I get in on early to take advantage of these early gains?
The Big Eyes presale!
Big Eyes Coin is a new Ethereum-based meme coin that is currently in stage 3 of its presale. A presale is the earliest possible time you could get involved in a project and for high potential projects like Big Eyes Coin, the presale could offer a once-in-a-lifetime opportunity for this new meme coin.
Like the Apecoin project, Big Eyes Coin is releasing a set of merchandise as well as an NFT collection and could be looking to make high-brow collaborations in the future. The project has already made $3.5 million in its first three stages of presale and doesn’t show signs of powering down.
As Bitcoin begins to show superior strength to traditional financial markets, this presale cryptocurrency could be the perfect addition to a balanced cryptocurrency portfolio. Interested in Big Eyes Coin? Check the button below.