Hunter Horsley, the CEO of Bitwise Invest, has dispelled the myth that Bitcoin (BTC) is correlated to U.S. equities.
Horsley tweeted that the 7.6 percent drop that the S&P 500, one of the benchmark stock market indexes, recorded on March 9 would correspond to the BTC price taking a 41 percent nosedive based on the historic volatility of these two assets.
Yesterday, the U.S. equities market had its worst day since the 2008 financial crisis with both the S&P 500 an the Dow being on the cusp of a bear market. The rapid sell-off was caused by a double-whammy of the coronavirus pandemic and collapsing oil prices.
The S&P 500 plunged more than seven percent after the opening bell, triggering circuit breakers for the first time since their implementation.
The index, which tracks the performance of America's largest companies, failed to rebound throughout the day and closed 7.59 percent lower.
Can they be compared?
During this king of mayhem, Bitcoin had a relatively calm day since its price plunged only five percent. This doesn't fit the narrative of the likes of Nouriel Roubini who say that the flagship cryptocurrency that is supposed to act as a safe haven is, in fact, performing worse than risk-on assets.
That said, some skeptics didn't buy Horsley's comparison since he didn't take into account those orders that were placed on stock exchanges during the weekend when the market was closed. If they were taken into account, Bitcoin would actually underperform with its 17 percent drop over the past three days.
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