- The crypto market saw a strong recovery soon after its mid-March crash, but the stock market is growing also.
- So far, the recovery seems to be progressing well, but many think that Bitcoin will outperform.
- Meanwhile, there is also a large percentage of those who expect that the worst has yet to come.
By now, everyone would agree that the year 2020 has been a financial trainwreck. Due to the coronavirus pandemic fears, the stock market crashed dramatically, followed by the crypto market itself. However, the crypto market started recovering fairly soon, and now, even the stocks are seeing an impressive comeback.
Despite this, cryptos are still leading on the road to recovery, particularly Bitcoin. The coin has made huge progress, even though it saw its third block rewards halving only a month ago. Now, investors are expecting Bitcoin to hit $11k mark before Nasdaq reaches 11,000 points, even though BTC still struggles with its psychological barrier at $10,000.
A recovery progresses, but who will take the lead?
Even though the market crash has been the harshest since the Great Depression, the recovery is progressing strongly, and the leading crypto is currently up by over 150% from its YTD low at $3.700. Meanwhile, Nasdaq’s own index is only 40% above the lows experienced in March of this year.
While this is still an impressive performance, investors seem to expect Bitcoin to continue outperforming the stock market.
So far, the demand for digital assets and services has seen a considerable boost, especially since the pandemic began. Technology stocks, in particular, saw an impressive performance.
Who will win: Bitcoin, Nasdaq, or neither?
Due to social distancing, companies like video communications firm, Zoom, experienced a huge spike in usage. Zoom itself surged by 220% in the last few months. Meanwhile, tech giants like Microsoft, Amazon, and Apple saw an approximately 10% boost since the beginning of the year.
This also resulted in a surge that the Nasdaq index saw, which exceeded 10,000 points. Even so, a recent poll indicates that 43% of people believe that Bitcoin will be the first one to hit $11k, while only 16% think that Nasdaq will be the one to reach 11k points first.
Meanwhile, 41% seems to believe that neither will hit the mark. This sentiment also manages to hold, as the economic trends are nowhere near bullish, and more and more analysts on Wall Street seem to be turning bearish.
The consequences of the virus outbreak and the Fed’s actions have yet to be felt, and the following months — and likely even years — will undoubtedly be quite challenging for the world.
