Bitcoin is 2023’s best-performing asset among 40 wealth classes
In a year marked by economic uncertainty, persistently high inflation, and concerns over rising interest rates, Bitcoin (BTC) has emerged as the star performer, outperforming other traditional asset classes. This performance by Bitcoin is notable despite the cryptocurrency mostly trading in a consolidation phase.
In particular, Bitcoin has emerged as the top-performing asset class in 2023, with gains of 63.3%, leading among 40 selected asset classes, according to data published by NYDIG on October 6.
Among these assets, the second-best performer is US large-cap growth, with gains of 28.2%. Meanwhile, Bitcoin has surpassed other notable assets, including the US stock market (12.2%), commodities (6%), cash (3.8%), and gold (1.1%).
One of the most striking aspects of Bitcoin’s performance this year has been its ability to maintain a relatively narrow trading range despite significant external pressures. The digital currency has held within the $25,000 to $31,000 range, resisting attempts to break out in either direction. Notably, the year-to-date gains have persisted, although Bitcoin experienced a slowdown in the third quarter, where the asset dropped by 11.1%.
According to the report, this stability has been maintained despite a series of events, including court rulings, macroeconomic shifts, concerns about a government shutdown, debates about the debt ceiling, and ongoing efforts to gain approval for a spot Bitcoin Exchange-Traded Fund (ETF) in the United States.
Bitcoin drivers for a possible rally
However, the report authors state that Bitcoin still has the potential to rally, driven by several factors.
Nevertheless, it is important to acknowledge that bitcoin is largely driven by unique idiosyncratic factors. Looking ahead, we are optimistic that significant industry developments, such as the potential introduction of a spot ETF and the upcoming halving, will play a more prominent role in driving bitcoin’s value in the future,” the report said.
