Beyond the price correction experienced by Bitcoin (BTC), its performance continues to stand out compared to other assets over the last year. It has registered an increase in this period three times greater than that of gold and the S&P 500 (SPX). The latter is the index that compiles the shares of the main 500 companies listed on Wall Street.

Bitcoin is up 127% in 12 months, while gold is up 29% and the SPX is up 25%. This is despite the latter two being about 2% away from their recent all-time highs. The precious metal was at $2,500 last week and the stock market index was at $5,600 two months ago.

In contrast, as seen below, bitcoin is trading 20% ​​off the all-time high of $73,700 it hit six months ago. Far from this being a sign of weakness for the market, however, it remains the clear winner of the past year when compared to gold and major stocks.

The price of Bitcoin is shown in orange, the price of gold is shown in purple, and the price of the S&P 500 is shown in dark red. Source: TradingView.

In fact, it is worth noting that it has taken the S&P 500 seven years to experience a rise of more than 120% like that of bitcoin last year , while gold has taken even longer, nine years. This can be seen in the following chart:

Comparison of the price performance of Bitcoin, Gold and S&P 500, on a year-to-date basis. Source: Bitcoin and Cryptos.

To give some insigh Bitcoin's performance over the past two years (194%) has outperformed the S&P 500's performance over a decade (182%). For this reason, it is crucial that investors do not panic in the face of uncertainty about how this historically bearish month will continue.

Bitcoin enters its worst month in history

September has been the month in which the price of bitcoin closed lower for the most years. In addition, markets in general tend to fall during this period, given that it is when the summer in the northern hemisphere ends, a season in which economic activities pause for vacations. However, this tends to give way to periods of bullish reactivation.

With the imminent start of autumn, coupled with the expected interest rate cut this month in the United States that motivates risk demand, expectations for the market improve towards the end of 2024. The falls that bitcoin may have in September will bring good buying opportunities for investors, according to its historical upward trend.