Bitcoin resisted the March 12 drop better than other markets. Willy Woo, a recognized analyst, compared BTC to gold and the S&P 500 index.
After the fall that the markets worldwide suffered as a consequence of the coronavirus pandemic, Bitcoin could be exhibiting properties as a safe haven of value, according to Willy Woo.
The renowned market analyst stated the reasons why Bitcoin could have such strength when comparing Bitcoin with traditional markets. He said that the cryptocurrency was able to overcome one of the biggest market falls ever occurring in recent history.
The big drop that Woo refers to is the one that the markets worldwide saw on March 12th of this year. It is important to remember that Bitcoin and the cryptocurrency market had similar movements regarding the drop. However, Willy Woo noted that the first cryptocurrency was beginning to decouple from the fall that traditional markets suffered.
On April 4th, Woo posted on his Twitter account a brief analysis in which he compared the graphs of Bitcoin, gold and the S&P 500 index since 2015. The analyst assures that this is the first time that Bitcoin has put its properties as a safe haven to test. In the image that Woo shared, his followers can see that the drop in the price of Bitcoin was less violent than that of other markets.
Notably, Woo is a partner and analyst at Adaptive Capital, a crypto hedge fund with a focus on on-chain analytics. Apparently, after the sharp fall in the price of Bitcoin on March 12th, the company announced that it would close all its operations due to the losses that it recorded.
Bitcoin’s Price Regains Its Strength
Although the fall of Bitcoin in March made many people lose money, this market is currently sending interesting signals. According to data from Whale Alert, there have been transactions with very high amounts of Bitcoin. For example, at 11 p.m. on April 6th, there was a mobilization of around 249,000 BTC (equivalent to USD 1.8 billion).
The mobilization of large amounts of Bitcoin does not guarantee that this will have any impact on the market. However, the activity of large whales in the market could be boosting the price of BTC. Last April 6th, the price of BTC went from USD 6,800 to a maximum of USD 7,440, a movement that represented an increase of 8%.
Furthermore, the volume of cryptocurrency trading has increased in the first quarter of 2020, compared to the last quarter of 2019. This growing activity in the cryptocurrency market also has its reasons related to the fall on March 12th.
To conclude, the first cryptocurrency experienced one of the worst falls in its history, but it managed to re-emerge as it has done in previous opportunities. Besides, it has proved to be a safe haven asset, since its holders can store value in situations of extreme economic crisis. The confidence that its users’ place in Bitcoin is what has allowed it to continue to be the main cryptocurrency in the market.
By Alexander Salazar
