Matt Hougan, chief investment officer at cryptocurrency index fund manager Bitwise, has opined that the current correction will be "short-lived" if history is any guide.
In fact, Bitcoin tends to outperform following such short-term dips in the long term.
"Over the past decade, if you look at all the days SPX has fallen 2% or more, bitcoin is down on average by 2.62%. Gold, by comparison, has risen 0.11% on average, showing it's a better one-day hedge. But if you look out one year from these days, bitcoin is up 189% on average versus 7% for gold," Hougan said.
As reported by U.Today, the U.S. stock market got clobbered following the release of a highly efficient and powerful model by Chinese startup DeepSeek.
The shares of Nvidia collapsed by more than 17%, which is the biggest drop since March 2020. The market cap of the leading US chip maker has lost more than half a trillion dollars.
Earlier today, Bitcoin hit an intraday high of $97,791, according to CoinGecko data.
However, the cryptocurrency managed to recover swiftly, currently trading above the make-it-or-break-it $100,000 level.
Some market observers were quick to take note of Bitcoin's strength. Chris Burniske of Placeholder VC has commented that the tech-heavy Nasdaq 100 index has actually underperformed the flagship cryptocurrency during the recent sell-off despite the fact that the former has a market cap of more than $27 trillion.
It is also worth noting that Bitcoin is just 8% away from its record high that was recorded just seven days ago.
Dan Burgin
Vladislav Sopov