Despite difficult macroeconomic conditions and headwinds in the crypto industry, Bitcoin rose more than 160% in 2023, fueled by the hype around spot Bitcoin ETFs.
Bitcoin is forecast to end the year ahead of all major traditional assets, according to data provider Kaiko Research.. Few companies are outperforming Bitcoin, including NVIDIA Corp (NVDA), which has jumped 241% year-to-date, outpacing Bitcoin’s 163% gain.
Bitcoin will close 2023 as one of the best-performing assets, showing growth of 160%
Kaiko’s analysis breaks down BTC’s price movement throughout the year into three stages. Between March and October, BTC almost exclusively traded between $25,000 and $30,000, falling sharply and hitting a multi-year low in mid-2023.
However, after BlackRock filed for a spot Bitcoin ETF on June 15, the market price of the cryptocurrency rose above $40,000.
Despite a somewhat lackluster midyear, Bitcoin has one of the best Sharpe ratios of any major asset this year, second only to semiconductor giant Nvidia, whose shares more than doubled between January and May on the artificial intelligence frenzy.
The US Securities and Exchange Commission (SEC) is expected to make a final decision in early January on whether to allow Bitcoin spot trading through ETFs.
Major Wall Street players are in line to receive approval, including Fidelity, WisdomTree, ARK and 21Shares, as well as VanEck and others. Investment Vehicle Approval Will Likely Increase Bitcoin Prices and Liquidity. BlackRock, for example, plans to invest $10 million in its product.
Kaiko’s analysis indicates that Bitcoin is inversely correlated with the Nasdaq 100 stock market index.
