The stock market (equity) volatility has been some of the most volatile in history. Not since the crash of 1929, nearly 100 years ago, have we had these 5-10% swings every day. It is unusual and even more volatile than 1987 or 2008. These are unusual times, and if we look at a historical chart for US Stocks you can see a near 50% sell-off. Markets in the US are bouncing back this morning as we finish the final weeks of Q2 2020 after a very difficult opening quarter for the new decade.
Bitcoin traded lower with the stock market, and this was purely a risk-off reaction by most of the investment community going directly to cash. Bitcoin was seen as a haven for safety prior to the Coronavirus sell-off that effected all asset classes from metals to soybeans. Bitcoin found some support during the recent sell-off in stocks and looks to decouple mirroring the stock market as volatility in all markets drop from stratospheric levels. The Vix is starting to settle down from its historic 70%+ levels not seen since the 1920’s.
Bitcoin versus the USDT held the $5000 level during the recent volatility and turned higher. Many will be watching to see if investors chase the token higher as it bounces. It is important to note Bitcoin is near it’s scheduled halving due in May. Learn more about that here.