It looks like the pattern will repeat itself again as the cryptocurrency prepares to close another year at the top. Not even gold and silver, which have performed remarkably well in recent months, can outperform Bitcoin.
Bitcoin as a winner in a chess game /Image by Gerd Altmann from Pixabay
A report by NYDIG, an American company focused on investment solutions, indicates that Bitcoin is the best asset of 2024. At the close of the 3rd quarter, its gains are at 49.2%.
For comparison, gold, which is at an all-time high, has grown 26.5% in the same period.
Regardless, the year has been good for investors overall, as most of the assets and asset classes mentioned have delivered returns of over 1% per month.
Bitcoin is in the spotlight again
Other studies show that Bitcoin tends to be either the best or worst investment of the year. Since 2011, BTC has appeared at the top 10 times, with the other three times being in last place.
It looks like the pattern will repeat itself again as the cryptocurrency prepares to close another year in the lead. Not even gold and silver, which have performed remarkably well in recent months, can outperform Bitcoin.
“Bitcoin is still the best performing asset (asset class) in 2024, but its advantage has diminished.”
“Most asset classes are having a banner year, again,” NYDIG wrote. “2023 also delivered significant returns for equities and precious metals. 2024 looks to be playing out much like 2023.”
Top Assets and Asset Classes for 2024 through Q3 close. Source: NYDIG.
Below are also several stocks grouped by category, including industrial, technology, financial, utility and others. At the bottom are short- and long-term US Treasury bonds, as well as commodities.
Bitcoin’s performance could have been much better, or much worse
Despite being at the top, Bitcoin has had a tough year. That's because its price has been pressured by massive selloffs by the German government, the US, and bankrupt companies like Mt. Gox and Genesis.
The cryptocurrency was saved by ETFs, which balanced the scales. Launched in January, they were responsible for the purchase of more than 303 thousand bitcoins, today valued at R$105 billion.
So, if it weren’t for these sell-offs, Bitcoin could be doing even better. However, if ETF applications had been rejected again, BTC could be in a tough spot.
Here are some of the biggest events that impacted Bitcoin’s price in Q3, from the launch of Mt. Gox payments to PayPal allowing merchants to buy cryptocurrencies. Source: NYDIG.
Finally, Bitcoin is expected to continue its rise. In another chart, NYDIG compares the current cycle with the three previous ones, from 2013, 2017 and 2021. Currently, gains are at 400%, with time to repeat what happened on other occasions.
Bitcoin cycle comparison. Source: NYDIG.