Advice to investors from Bitwise: “look back” strategy in Bitcoin. Asset manager Bitwise proposed the “look back” strategy to evaluate BTC in his last letter to investors.
Crypto asset management firm Bitwise proposed a “look back” strategy to assess BTC in the middle of the coronavirus epidemic and at a time when trillion dollar bailouts were announced by sending a letter to investors.
After stocks, gold and equity unexpectedly turned into a huge turbulence and turmoil, the firm determined Bitcoin as an alternative investment tool and analyzed exactly how it fits into this wild financial climate.
In the period when the S&P 500 went upside down and experienced its second biggest daily decline in its history and the biggest daily percentage gain in its history, analysts; They point out that real estate, crypto, stocks, bonds and gold are under pressure due to macro factors, which pushed Bitcoin under $ 4,000 and painted the entire crypto money market in red.
Stand back and see the reverse correlation
Analysts comment as follows:
“The fall of Bitcoin in March has created question marks in some minds: How can an asset be safe if it will be sold in crisis? If you pull back a little, the reverse correlation in the long run will clearly emerge. When you look at the 12-month process on March 31, 2020, it is seen that Bitcoin is 55 percent plus and S&P 500 is 8 percent negative. In the last 3 years, BTC is 463 percent and S&P 500 is 16 percent plus… ”
Bitwise team; He concludes that the return and rise of Bitcoin in an era of trillion-dollar recovery packages in the midst of job losses, closure of factories and ‘stay at home’ calls indicate that it has come under an unimaginable burden in the long run.
“Bitcoin shows remarkable stamina”
In his investor letter, “Bitcoin, which is 5 times more volatile than S&P on average, in a period of historical declines in financial markets; oil did not fall like stocks or rising market stocks. On the contrary, according to historical volatility rates, it actually had a calm crisis. As with all financial assets, sometimes correlations may follow the correct proportions during the periods when everyone is selling. However, since the coronavirus was first accepted and defined by the World Health Organization, the crypto world has shown remarkable resilience since 3 months ago. ”