Key Points:
- Bitcoin’s current three-month decline is less severe than during the 2021-2022 correction, which shows a more stable market environment.
- In the ranking of the ‘Magnificent Seven’ tech stocks, Bitcoin’s performance is positioned in the middle, surpassing Tesla and NVIDIA while matching declines observed in Apple, Meta, and Amazon.
The U.S. dollar index (DXY) has dropped below 100, and gold has reached unprecedented highs due to rising tariffs that are creating global economic uncertainty. As a result, asset prices, especially in the technology and cryptocurrency sectors, have taken a hit.
Bitcoin (BTC) has fallen approximately 26% from its all-time high of $109,000 recorded in January. Compared to the Magnificent Seven tech stocks, Bitcoin’s drawdown places it right in the center, which indicates its evolving maturity as an investment.
Tesla (TSLA) is currently the worst performer, down nearly 50%, with NVIDIA (NVDA) experiencing a 31% drop. Apple (AAPL), Bitcoin, Meta (META), Google (GOOG), and Amazon (AMZN) have all recorded decreases around 26%, whereas Microsoft (MSFT) exhibited a more modest 18% decline.
This current three-month correction is contrasted with the sharper decline seen from November 2021 to February 2022, when Bitcoin plummeted by 45% from $69,000 to $38,000. At that time, Bitcoin was the least performing asset among notable tech companies, although Tesla also faced considerable losses.
These comparisons highlight how Bitcoin has become more resilient as it matures, further showcasing the evolution of its market cycles.
