soaring dollar break up a stock portfolio, the crash in commodity prices and the fall in rival currencies. The British pound is one of the most volatile currencies against the dollar, declining 5.6% over the past seven days and briefly hitting a record low of $1.0327 on Monday.
But there is one asset that has remained relatively calm over the past week. It’s Bitcoin. The cryptocurrency has performed surprisingly well, rising 6.5% over the past 7 days, attracting the attention of cryptocurrency bulls and bears.
“You know we have reached a unique time in history when #Bitcoin became less volatile than fiat currencies.” Sven Henrich tweeted, founder of the market research firm NorthmanTrader. Henrich was one of the most prominent bears in the recent bull market, warning against overpriced assets such as cryptocurrencies.
When central banks hiked interest rates, Bitcoin traded mostly like risk assets such as tech stocks. But the past month hasn’t always been that way. Bitcoin has traded green so far in September (albeit marginally), but the technology-focused Nasdaq has fallen nearly 10% over the period.
But zooming out further, this picture looks more terrifying to crypto bulls. Bitcoin has lost more than half of its value in 2022, significantly underperforming stocks, bonds and most currencies.