New data from TradeBlock indicates that Bitcoin (BTC) has outperformed the stocks of big banks such as Wells Fargo, JPMorgan, Bank of America, and Citigroup during 2020. In addition, it is outperforming the stocks of the major credit card processors Visa and Mastercard and major online payments platform PayPal.
Chart courtesy of TradeBlock, showing the performance of Bitcoin (BTC) versus various stocks
Bitcoin (BTC) has technically declined since the beginning of 2020, but by less than 5%, while big bank stocks have seen major losses. Citigroup and Wells Fargo are the biggest losers with their stocks dropping by roughly 50%, while JPMorgan and Bank of American have seen losses of 30-40%. Meanwhile, Visa, Mastercard, and PayPal have seen losses in the 10-20% range.
The reason that banks are suffering is that mass defaults on loans and mortgages are occurring amid the Coronavirus Pandemic. Simultaneously, payment processors are seeing losses due to a sharp decline in retail and commercial sales, which is being driven by the closure of basically all ‘non-essential’ businesses in the country.
Bitcoin (BTC) saw losses as well amid the Coronavirus induced stock crash earlier this year. But Bitcoin (BTC) has bounced back much faster than the stock market, since Bitcoin (BTC) is not being held back by the chain reaction that is now occurring in the economy.
So far in 2020 Bitcoin (BTC) has outperformed the stocks of banks and major payment processors. It is quite possible that this trend will continue throughout 2020, since the default chain reaction which is bogging down banks is only just beginning.