Silver has seen diminishing gains compared to the Nasdaq. The chart should look familiar to those of us in the cryptocurrency world, particularly altcoin investors.
Silver has been performing exceptionally poorly compared to the stock market since 2012. When put up against the Nasdaq, silver’s drastic drop resembles the charts for many altcoins in the past few years.
Has Silver Been Performing Like a Sh*tcoin?
Often touted as a complement to gold, silver has seen declines ever since 2012. The precious metal seems to have fallen out of favor as a hedge as investors look to the stock market for gains. The Nasdaq has likewise been booming since 2012 and has left silver in the dust.
As Crypto Michael (@CryptoMichNL) asks on Twitter, “If you see this chart, what do you think of it?” He goes on to post a chart of silver/Nasdaq.
Many replied that it seems to look like most altcoins. However, others maintained that they saw silver as a “bottomed asset with a bullish divergence.” Interesting how, even with the same graph, two people can see entirely different opportunities.
Others didn’t mince words when they saw the chart, and many seemed to agree: the chart looks like a ‘sh*tcoin.’
Most Altcoins Continue to Struggle in 2020
Although there are plenty of promising blockchain projects in the cryptocurrency space, most are still well below the BTC ratios they saw in 2017—and many probably won’t reach those levels ever again.
Most altcoins did see a major boom in January, however. Exchange tokens performed exceptionally well, as BeInCrypto previously reported. However, the coronavirus has created widespread market panic that caused the entire market to crash. Bitcoin dropped below the $9,000 price point, and most altcoins were slaughtered. Some $20B of value was lost in a massive market rout in late February.
Some altcoins still possess bullish fundamentals, but most of the ‘older’ projects that have failed to materialize will likely end up looking much like silver’s chart against the Nasdaq. With Bitcoin’s halving coming up in May, we can expect to see Bitcoin continue to tick upward—but it remains to be seen whether or not altcoins will follow or further depreciate relative to BTC.