Bitcoin Will Close 2023 As One Of The Top Performing Assets, Up 160% – Caico
Bitcoin (BTC) is set to finish the year outperforming major traditional assets, data provider Caico Research predicts. Despite tight macroeconomic conditions and headwinds in the crypto industry, the cryptocurrency is up more than 160% in 2023.
A few companies have outpaced Bitcoin's performance, including NVIDIA Corp (NVDA), which has jumped 241% year-to-date, outpacing bitcoin's 163% gain.
Kaiko's analysis breaks down BTC's price action throughout the year into three phases. BTC was always trading between $25,000 and $30,000 between March and October, before falling sharply and hitting multi-year lows in mid-2023. However, the cryptocurrency's market value rose above $40,000 on June 15 following BlackRock's listing on a Bitcoin exchange-traded fund (ETF).
“So while it's a bit dull in the middle of the year, BTC has one of the top assets' Sharpe ratios this year, second only to semiconductor giant Nvidia, whose stock has doubled from January to May on AI excitement.
The United States Securities and Exchange Commission (SEC) is expected to make a final decision on whether to allow spot trading of Bitcoin through ETFs in early January. Companies in line for approval include major Wall Street players, notably Fidelity, WisdomTree, ARK and 21Shares and VanEck, among others. Approval of the investment vehicle will boost Bitcoin prices and liquidity. For example, BlackRock plans to seed its product with $10 million.
Kaiko's analysis suggests Bitcoin's correlation with the stock market index Nasdaq 100. According to the company, Bitcoin is often described as a hedge against inflation compared to the digital version of gold. However, the value was mainly influenced by macroeconomic factors, dollar performance and stock market trends.
“This trend began to reverse this year, when BTC rallied during a series of declines from January to July, and at the end of the summer the reversal stopped below $30k. The most rapid correction came recently, BTC broke $40k. It remains. Equity indices – including the Nasdaq 100 – It remains to be seen whether this trend will continue as they continue to break all-time highs,” Kaiko wrote.
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