In a year marked by economic uncertainty, persistently high inflation and concerns about rising interest rates, Bitcoin (BTC) has emerged as the star performer, outperforming other traditional asset classes. This performance of Bitcoin is remarkable despite the fact that the cryptocurrency is mostly trading in a consolidation phase.
Bitcoin outperforms major assets
According to data published by NYDIG on October 6, Bitcoin emerged as the best-performing asset class in 2023 with a gain of 63.3%, leading among the 40 selected asset classes. The second best performing asset among these assets is US large-cap growth with a gain of 28.2%. Meanwhile, Bitcoin outperformed other major assets such as 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 cryptocurrency resisted attempts to break out in both directions, holding within a range of $25,000 to $31,000. It is noteworthy that despite experiencing a slowdown in the third quarter, when Bitcoin fell by 11.1%, the gains made since the beginning of the year have continued. This stability has been maintained despite a number of events, including court rulings, macroeconomic changes, concerns about a government shutdown, debates over the debt ceiling, and efforts to gain approval for a spot Bitcoin Exchange Traded Fund (ETF) in the United States, according to the report.
Driving forces in BTC for a possible rally
However, the report authors state that Bitcoin still has the potential to rise due to the influence of various factors. “However, it is important to recognize that Bitcoin is largely driven by idiosyncratic factors,” the report said. “Looking ahead, we are optimistic that key industry developments, such as the potential introduction of the spot ETF and the upcoming halving, will play a more prominent role in increasing the value of bitcoin in the future.” says.
Meanwhile, the market is closely watching potential price levels that could signal the beginning of a bull market. Bitcoin needs to hold the bull market support level at $24,900. Alongside ETF news, analysts are examining short-term catalysts that could trigger a short-term bull run, such as a significant deviation to the upside in the employment report. In this regard, the Bureau of Labor Statistics reported that 336,000 jobs were added in September, exceeding economists’ forecasts of just 170,000. The unemployment rate remained unchanged at 3.8%, defying expectations of a decline to 3.7%. Although this development initially caused a small decline in Bitcoin’s price, the asset has since made gains. At the time of writing, it stands at over $28,000.
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