According to investment bank Goldman Sachs, bitcoin has been the standout asset of the year so far, with its value increasing significantly in just under three months.
Compared to other major assets, bitcoin has experienced the highest growth rate, having risen by an impressive 51% since the beginning of the year.
The BTC rate has now exceeded $28,000, and experts predict that this upward trend will continue. Notably, bitcoin has outperformed other assets such as IT, telecoms, consumer goods, Russell 1000 Growth, gold, and S&P 500 stocks.
Additionally, when considering the risk-adjusted return, bitcoin also ranks highest, with a Sharpe ratio of 1.9, compared to IT companies with a ratio of 1.5, the Nasdaq stock index with a ratio of 1.4, and healthcare companies, which have a negative Sharpe ratio of -1.1.
Goldman Sachs analysts believe that bitcoin’s growth can be attributed to investors anticipating monetary policy easing by the US Federal Reserve.
Furthermore, the recent banking crisis in the United States has led many investors to seek more reliable investment opportunities, with bitcoin being one such option.
Unlike stablecoins, which are dependent on traditional financial institutions, bitcoin is largely independent.
This independence from centralized institutions has led investors to transfer some of their savings from stablecoins to BTC.