New Study Says BTC Outperformed Both S&P 500 and Nasdaq in September – Markets & Prices Bitcoin News
Despite a 3.11% drop in value in September, bitcoin still outperformed both the S&P 500 and the Nasdaq, the latest Cryptocompare report has shown. Ethereum, on the other hand, was named “the worst performer after the much-anticipated merger turned out to be a ‘buy the rumor, sell the news'”. Increased trading volume for bitcoin and the US dollar is said to suggest that panicked investors dumped falling currencies in favor for the cryptocurrency.
Ethereum Sees ‘Biggest Decline’
According to the latest Cryptocompare report, bitcoin, which had a negative return of 3.11% in September, still outperformed “both the S&P 500 and the Nasdaq which had a negative return of 9.34% and 10.5% respectively. Only Solana – the cryptocurrency among the tracked four that had a positive monthly return of 5.59% – and gold (2.87%) had better risk-adjusted returns than bitcoin.
Ethereum, on the other hand, is identified in the report as “the worst performer [among four tracked cryptocurrencies]after the much-anticipated merger turned out to be a ‘buy the rumor, sell the news’ arrangement.”
To support this claim, the report points to the crypto asset’s contrasting fortunes in August and September. After seeing its best risk-adjusted return in August, ETH continued to have “the biggest decline” in September, the same month that the Ethereum blockchain switched to a proof-of-stake (PoS) consensus mechanism.
Traders dumped Fiat and piled into BTC
As for the volatility of the different assets, the report said bitcoin was the “least volatile asset and the most dominant” among four cryptocurrencies tracked in the month of September.
Explaining the study’s findings of volatility in the crypto market, the report states:
Volatility across the cryptocurrency markets saw a slight increase in September due to the interest rate hikes and the volatile macro environment. ETH and SOL continued to be the most volatile assets, with 30-day volatility of 80.0% and 82.6% respectively. Bitcoin’s volatility rose 19.2% in September, breaking a downward trend that started in June.
Meanwhile, the findings of Cryptocompare’s survey of both USDT and US dollar traded volumes suggest that panicked investors dumped falling currencies in favor of BTC. In September alone, traded volumes in Tether and dollars went up “by 15.4% and 15.1% respectively.”
According to the report, this could mean “market participants are piling into BTC following recent volatility in fiat currencies, including the British pound and Japanese yen.”
In contrast, USDT volumes for ETH during the same period “saw a huge drop of 49.4%”, while SOL saw “a noticeable increase of 10.5% in USDT volumes in September.” ADA and SOL both saw declines in USD volumes.
Do you agree with Cryptocompare’s latest findings? Let us know what you think in the comments section below.
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