During the four-week war between the US and Iran, Bitcoin outperformed both the S&P 500 and gold.
This cryptocurrency is also widely adopted by institutions and war-hit countries.
There are several reasons why digital gold is preferred over traditional assets.
Bitcoin ($BTC) is better than gold and the S&P 500 ($SPX) in terms of revenue over the past month as the US-Iran war continued.
In particular, the dispute has caused widespread tension and anxiety among investors, with volatility seen in cryptocurrencies, stock markets, and gold prices.
This trend is likely to persist, as Iran has signaled a determined and aggressive stance after peace talks with the United States were said to be non-existent.
Bitcoin has historically outperformed gold and the S&P 500
According to Bitcoin-focused fintech company River Financial, the 60-day return is $BTC Investment is 12%, gold and $SPX are -16% and -4% respectively.
Clear differences in these metrics have also occurred in other past events, including the coronavirus outbreak, the Russia-Ukraine war, the 2023 U.S. local banking crisis, and the 2020 U.S.-Iran crisis.
Source: CoinMarketCap
Source: TradingView
Meanwhile, the S&P 500 index was trading at 6,585.28 points, up 1.21% in the past 24 hours.
Source: MarketWatch
When it comes to market capitalization, these indicators are reversed, with the S&P 500 leading the way with $59.5 trillion, followed by gold with $30.62 trillion, and cryptocurrencies with $2.43 trillion, of which $1.41 trillion is attributable. $BTC.
why $BTC Outperform traditional assets
Bitcoin has become the investment of choice for many due to its unprecedentedly high long-term ROI (return on investment). Over the past 10 years, the ROI for Bitcoin, S&P 500, and gold was +15,355%, +289.7%, and +125.8%, respectively.
The move away from traditional stocks has led to increased adoption of spot ETFs, with Morgan Stanley recently joining the trend, making them more attractive among financial institutions.
Cryptocurrencies also offer 24/7 trading, censorship resistance, portability, and $BTCthe predominance of scarcity-induced inflation – a feature that has united its adoption among the war-torn countries of Ukraine, Russia, and Iran.
That said, all financial products are subject to price fluctuations due to prevailing geopolitical tensions and upcoming news regarding inflation, interest rate cuts, and employment data.
So far, all three companies have indicated either “sell” or “extreme fear” sentiment, with liquidations ranging from millions to trillions of dollars.
