{"id":186149,"date":"2021-09-23T18:00:36","date_gmt":"2021-09-23T12:30:36","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=186149"},"modified":"2021-09-23T13:33:20","modified_gmt":"2021-09-23T08:03:20","slug":"bitcoin-v-sp-500-this-seems-like-an-overreaction-by-speculators-if","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/bitcoin-v-sp-500-this-seems-like-an-overreaction-by-speculators-if\/","title":{"rendered":"Bitcoin v. S&P 500: ‘This seems like an overreaction by speculators if…’"},"content":{"rendered":"

The price of Bitcoin dropped sharply as investors began shedding risk amid a global equity markets decline. One precipitated mainly due to the Evergrande Crisis<\/a> and regulatory setbacks around the world.<\/p>\n

Now, many people have argued that Bitcoin is most useful as a safe-haven asset, compared to the equity market. That being said, corrections weren’t really familiar to just one of these markets.<\/p>\n

In fact, according to CNBC, the S&P 500 fell<\/a> by 1.7% to 4,357.73, posting its worst daily performance since 12 May just 2 days ago.<\/p>\n

\"\"
Source: CNBC<\/a><\/figcaption><\/figure>\n

Comparing both of them, popular chartist and on-chain analyst Willy Woo recently took to Twitter to discuss the same in a series of tweets<\/a>. With reference to the drawdowns noted by both, the analyst claimed,<\/p>\n

“Seems like an overreaction by speculators if you ask me.”<\/p><\/blockquote>\n

Why? Well, the following chart may give us an idea of the same.<\/p>\n

\"\"<\/a>
Source: Twitter<\/a><\/figcaption><\/figure>\n

Meanwhile, long-term investors remain undeterred in their quest to HODL their holdings. Some are even buying more. Woo tweeted,<\/p>\n

“Since long-term investors aren’t batting an eyelid, they keep on buying like nothing has happened. Sooner or later there will be a supply squeeze to the upside.”<\/p><\/blockquote>\n

In addition to this, he further presented his vote of confidence for the world’s largest crypto-token. Like many others, Woo remains bullish since,<\/p>\n

“Even if equities sell-off, BTC proved that it acts as a safe-haven in the COVID white swan event. After the short term BTC investors sold off in a flight to safety, long term investors piled on with buys, even as equities tanked further. This time investors aren’t even selling.”<\/p><\/blockquote>\n

The analyst went on to substantiate his point by sharing the following chart as well.<\/p>\n

\"\"
Source: Twitter <\/a><\/figcaption><\/figure>\n

Nevertheless, not everyone agrees with Woo on the subject in question. For instance, one of his followers was quick to point out that,<\/p>\n

\n

Wut?<\/p>\n

"Even if equities sell-off, BTC proved that it acts as a safe-haven in the COVID white swan event."<\/p>\n

BTC … nuked a lot harder lol pic.twitter.com\/Sphq6pC2yZ<\/a><\/p>\n

— dart (@poordart) September 22, 2021<\/a><\/p><\/blockquote>\n