The world’s most valuable currency begins the day on a flat note near $40,000 and then moves into a fairly narrow range. Despite this, the present market movement is attracting buyers for new upside positions. BTC fell about 6 percent in the previous session, breaking below the critical $40,000 barrier.
BTC/USD has dropped again after reaching a high of $43,000 yesterday. Bitcoin is currently trading below the $40,000 mark. Meanwhile, bulls are finding it difficult to break through resistance over $43,000, as bears are pushing the price lower to retest support.
Bitcoin shines, IT giants struggle
While Bitcoin (BTC) maintained a tight trading range this year, it outperformed several major technology equities. Year-to-date losses at IT giants like Alphabet, Microsoft, Amazon, and Meta were significantly more than at BTC.
In 2022, BTC has generally tracked major US technology equities. However, a disparity in their YTD performance could signal that decoupling is possible in the future. The token has also outperformed the Nasdaq composite index, which is heavily weighted on technology.
The world’s most valuable cryptocurrency is currently down about 12% year to date. Alphabet, Microsoft, and Amazon, on the other hand, are down between 13 and 17 percent. The Nasdaq composite index has also dropped by roughly 16%.
Only Apple has outperformed BTC among the five most valuable equities on Wall Street. The stock of the iPhone maker is down around 9% for the year. Tesla, which has BTC on its balance sheet, has lost approximately 16 percent so far this year.
Meta Platforms, the company that owns Facebook, has dropped 44% this year due to concerns over falling user numbers.
While the underlying emotion driving BTC and stock losses is similar—concerns about increasing inflation and a hawkish Federal Reserve—the token appears to be more immune to market volatility.
However, this is limited to tech equities. Berkshire Hathaway, the largest non-technology company on the S&P 500, has outperformed Bitcoin this year, rising 13.5 percent.
During periods of high inflation and tighter monetary policy, non-technology sectors tend to perform better.
United Health Group and Johnson and Johnson, a pharmaceuticals major, are both up 7%.