- Bitcoin stays near $84K while U.S. stocks lead at $96K with strong gains.
- The Chinese stock market remains weak with prices far below past highs.
- Japan shows steady growth while Bitcoin moves with high risk and sharp swings.
Bitcoin’s performance against major global stock markets has followed a distinct trajectory since 2020, full of both volatility and longer-term trends, including the decline observed in the past few months. On the chart shared in Marty, Bitcoin, the U.S. stock market, the Japanese stock market, and the Chinese stock market have all been sketched to show their past four years.
The U.S. stock market (yellow) leads, hitting $96,377, while Bitcoin (blue) rest at $84,149 looking down but not out against most traditional markets; meanwhile, the Japanese stock market (green) is figuring at $86,199 down and the Chinese stock market (red) has been lagging behind at $42,049. This shows that recoveries across its peers seem weak.
Volatility in Bitcoin, Yet Still Competitive
With strong upward moves achieved during 2020, followed by sharp corrections, Bitcoin’s trajectory has almost nothing in common with the eyeballing achieved by traditional equity markets under these volatilities.
The two stock markets in one dimension where Bitcoin has seen growth and recovery are at another dimension in which the U.S. stock market has seen orderly and steady growth in the U.S. With similar steady growth parameters, the Japanese stock market has been sailing, while the Chinese one seems to have taken the liberty to dwindle down amid strongly showing economic and follow-up uncertainties from the investor’s threat point of view. At this moment, it is worth noting: trading only 13 percent below the U.S. stock market valuation on this chart. Somehow, Bitcoin can still compete with other assets.
Poor Performances of Chinese Stock Markets as The U.S. Stock Market Gains Magnetism
While the Chinese stock market has showed poor performance for some time, retaining sub-2020 levels for much of the period, U.S. and Japanese stock markets have been on steady gain, gaining greater and greater investor confidence.
The price movement of the token has followed trends of higher risk assets, spiking in growth, and crashing down corrections, unlike the steady-gain conditions of U.S.- and Japanese markets. Since then, the cryptography seems to be resisting pullbacks compared to the already weakened Chinese equities, which are uncertain and lower in participation.
Implications for Future Market Trends
On the current path, price action denotes another potential breakout for Bitcoin, in case where prices can maintain stability above immediate support levels. While U.S. markets are firmly in the lead, the closeness of performance gives credit to the argument that digital assets are still trading against traditional finance. Weaker performers of the Chinese stock markets point to wider economy issues, while steady upward movement of the Japanese stock market shows good investor confidence in that region.
