Is Bitcoin the Best Performing Asset in 2023?

According to Kaiko Research, Bitcoin is expected to be the best performing “most important asset” in the world by the end of 2023. Measured since the beginning of the year, the digital currency has grown by 160 percent, although macroeconomic conditions have not been ideal (centrally bank rate increases/inflation) and the crypto industry faced major setbacks in 2022 (FTX -collapse/implosion). Moon).

According to Kaiko, only NVIDIA Corp has actually outperformed Bitcoin when adjusting performance based on risk.

The year of Bitcoin

Kaiko divides the Bitcoin year into three parts. Between March and October 2023, the price of Bitcoin fluctuated almost continuously between $25,000 and $30,000.

Then came the breakthrough with the application for a spot Bitcoin ETF by the major BlackRock. As a result, Bitcoin’s price eventually rose above $40,000.

“Despite a dismal middle year, Bitcoin has one of the best Sharpe ratios of any major asset this year; and it will simply have to settle for NVIDIA, whose stock doubled from January to May 2023 due to its enthusiasm for artificial intelligence,” said Kaiko.

Kaiko analysts are the most optimistic about the launch of spot Bitcoin ETFs in the United States, but we will probably have to wait until early January 2024 for that.

Bitcoin loses correlation with the Nasdaq 100

Another notable development that Kaiko analysts have noted is the reversal of Bitcoin’s correlation with the Nasdaq 100, the US technology exchange.

According to Kaiko, Bitcoin is often portrayed as a hedge against inflation and as a digital version of gold. But the value of Bitcoin was ultimately mainly determined by macroeconomic developments, the evolution of the US dollar and the evolution of share prices.

“That trend started to reverse this year,” says Kaiko.

Although it is difficult to fully agree with this, because just like Bitcoin, the Nasdaq 100 also had a fantastic year with an increase of more than 50 percent.

Source: BTC Direct

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