The price of Binance Coin (BNB) dropped by more than 13% against Bitcoin. Only the returns of Chainlink (LINK) were close to that of Bitcoin in recent days.
The price of Bitcoin (BTC) has recently achieved a bullish momentum, which has spread to the rest of the cryptocurrencies in the market. However, while the value of major altcoins has risen relative to that of the US dollar, the situation has been different when compared to the pioneering cryptocurrency.
In recent days, blockchain analytics firm Glassnode published its latest weekly report. In that document, they highlight that the bullish market has given Bitcoin a greater boost than other major cryptocurrencies. Among these are Ether (ETH) from Ethereum, Bitcoin Cash (BCH), Chainlink (LINK), Polkadot (DOT), Ripple (XRP), and Binance Coin (BNB).
Between October 19th and 25th, the price of Bitcoin increased by about 14% against the US dollar. In those same days, LINK appreciated by more than 12%, while BCH and ETH experienced increases of at least 8% in their prices. DOT (6.1%) and XRP (4.3%) also had an appreciation against the U.S. dollar. Of the list that Glassnode studied, only BNB underperformed.
However, despite that increase in the U.S. fiat currency, all of the aforementioned cryptocurrencies suffered losses against Bitcoin. Specifically, BNB and XRP had declines of more than 13% and 12%, respectively. LINK was the only one on the list that lost the least (1.2% of its value), compared to BTC.
During the last week, the price of Bitcoin has experienced a significant rise. The news that PayPal will include cryptocurrencies on its platform seems to have led the price of BTC to overcome the USD 13,000 barrier, and even approach USD 13,800 at times.
Bitcoin’s Performance Outpaces That of Traditional Markets
Over the past seven days, Bitcoin’s performance has outpaced the major altcoins in the market. However, this is not the only time that has happened. The performance of the first cryptocurrency has also outpaced that of traditional markets so far this year. It has recorded increases larger than those of equity indexes, precious metals, and stocks.
On October 23rd, the closest thing to the increase in the price of Bitcoin in percentage terms was the appreciation of Google’s stock. The price of BTC has risen by around 80% in 2020, but the shares of the company are up 70%.
The prices of gold and silver have risen by more than 50%, coming a little closer to BTC’s performance. However, the performance of indexes such as the S&P 500 (6%) and the Nasdaq (30%) have been lower than that of Bitcoin.
It is possible to observe that Bitcoin has been decoupling from the behavior of traditional markets. This has occurred since the beginning of the economic collapse that the pandemic caused in March. High levels of correlation between BTC and gold, and even the S&P 500, followed that event.
By Alexander Salazar
