Mohamed El-Erian, Chief Economic Advisor at Allianz, noted Bitcoin's BTC/USD underperformance in August vis-à-vis other major asset classes.
What happened: In an X post on Sunday, the renowned economist compared the leading cryptocurrency with blue-chip stock indices, the Dow Jones Industrial Average, and the S&P 500, and major commodities like gold and oil.
He observed how most assets recovered strongly after Black Monday—the day when capital markets around the world went on a downward spiral—with the exception of Bitcoin, Chinese equities and oil.
Indeed, the Dow gained 3.01% over the last month, while the S&P 500 was up 3.7% over the month. Additionally, gold traded flat with just a 0.39% decline during August.
However, King Crypto plunged more than 11%, failing to notch a sustainable recovery after Monday's rout.
However, despite the turbulent performance in August, the apex cryptocurrency remained the best-performing asset year-to-date, with more than 38% gains.
Why It Matters: Sentiment around the digital asset remained weakened last week.
Exchange-traded funds tracking Bitcoin's spot price recorded net inflows of $277 million last week, with August witnessing net outflows of just over $12 million.
The cryptocurrency market started September on a weak note as leading coins tumbled over the weekend. Historically, the month has been unfavorable for Bitcoin, with average losses of 4.63%. BlackRock’s iShares Bitcoin Trust IBIT was the largest ETF, with assets exceeding $21 billion as of this writing, according to SoSo Value.
Price Action: At the time of writing, Bitcoin was trading at $57,615.69, down 1.3% in the last 24 hours, according to data from Benzinga Pro.
Photo by International Monetary Fund on Flickr
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