Brazil-based cryptocurrency platform Mercado Bitcoin has published a new analysis showing that Bitcoin stands out among traditional safe havens in the recent global crises. The research pointed out that Bitcoin has outperformed assets such as gold and the S&P 500 following various economic and geopolitical shocks.
Performance of assets in the post-crisis period
Rony Szuster, who led the research and works as a research department manager at one of Latin America’s leading crypto platforms, examined the 60-day time intervals following developments such as the COVID-19 outbreak and the customs tariffs imposed by the USA. After both crises, it was stated in the report that Bitcoin offered better returns than gold and the S&P 500 index.
In the two months after the far-reaching tariffs announced by the Trump administration in April 2023, the value of Bitcoin increased by 24 percent. In the same period, gold gained 8 percent, while the S&P 500 index rose 4 percent. A similar picture emerged in the early days of the COVID-19 pandemic. While Bitcoin rose 21 percent in March 2020, the other two assets lagged behind in this process.
The report points out that in times of economic shock, investors often exit various assets due to the need for liquidity. In this process, not only risky assets but also defensive options may temporarily lose value.
Latest developments and long-term performance of Bitcoin
During the current US-Iran tensions, Bitcoin has emerged as the only asset among gold and the S&P 500 to offer positive returns. The research stated that there has been an increase in the value of Bitcoin exceeding 2.2 percent since the start of the war. In the same period, gold lost approximately 11 percent in value, while the S&P 500 decreased by 4.4 percent. This was the sharpest monthly depreciation in the index since 2022.
Rony Szuster emphasized that making quick generalizations about the performance of assets immediately after crises can give misleading results.
He stated that there is a similarity between watching the first minutes of the film and making a decision about the ending. He stated that in times of crisis, investors close positions to meet their cash needs, while not only risky assets but also safe havens may remain under temporary pressure.
The research pointed out that in times of tension and crisis, the Bitcoin price may be subject to large fluctuations, but then it tends to recover. This recovery trend also repeated during the recent US-Iran tension.
Szuster stated that in light of the data, cryptocurrency is the asset that has provided the best return in the last decade.
