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Bitcoin Gets Outperformed by Stocks During Quiet Month

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Mon, 08/31/2020 - 14:30
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Alex Dovbnya
Bitcoin's modest performance in August gets completely outshone by stocks
Bitcoin Gets Outperformed by Stocks During Quiet Month
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Bitcoin is having one of its quietest months on record.

According to data provided by cryptocurrency analytics platform Skew, the flagship cryptocurrency is on track to close August with a modest two percent gain.

Skew
Image by analytics.skew.com

Bitcoin's second-best month

On Aug. 17, BTC surged all the way to $12,473 on the Bitstamp exchange, which remains at its 2020 high.

The rally turned out to be a flash in the pan; the top cryptocurrency corrected five percent the following day and failed to maintain its momentum through the rest of August.

Nevertheless, Bitcoin is going to log its second-highest monthly close if the bulls manage to hold the $11,400 level.

TradingView
Image by tradingview.com

Aug. 31 will also mark the end of this year's third quarter. Bitcoin is about to have its most successful Q3 since 2017 by gaining 27 percent.

The bellwether cryptocurrency is up 63 percent year-to-date and 22 percent on the year-over-year basis.

Related
Max Keiser Gloats Over Subpar Performance of Bitcoin Cash (BCH) and Bitcoin SV (BSV)

Stocks steal Bitcoin's thunder

Meanwhile, the U.S. equities market is set to have its strongest August in 20 years as stocks continue to stubbornly ignore the economic gloom caused by the ongoing recession.

The S&P 500 and the tech-heavy Nasdaq have been updating new all-time highs this August. The Dow is also only three percent off its record closing high.

The fact that Bitcoin has been outperformed by the S&P 500 should not come as a surprise since this has been a persistent trend for the past year.

SP500
Image by analytics.skew.com

The top cryptocurrency started showing its risk-off side in August by trading in lockstep with gold after the yellow metal reached its lifetime high of $2,075.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.