Is Bitcoin Still the Top-Performing Asset, Despite Recent Decline?
As the cryptocurrency landscape evolves, questions arise regarding the resilience and performance of leading digital assets.
Bitcoin remains the top-performing asset of 2024, according to the New York Digital Investment Group (NYDIG), despite a modest 2.5% increase in Q3.
Year-to-date, it has risen by 49.2%, although its lead over other assets has diminished. The cryptocurrency faced challenges, including significant sell-offs and $13.5 billion in claims from Mt. Gox and Genesis creditors.
Despite these hurdles, Bitcoin posted a 10% gain in September, a typically weak month. Key drivers of its performance include robust demand from U.S. spot exchange-traded funds (ETFs), which attracted $4.3 billion in Q3, and increased corporate interest from companies like MicroStrategy.
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Dormant Bitcoin Wallet Awakens After 11 Years, Moving MillionsGreg Cipolaro , NYDIG’s research head, noted that Bitcoin’s correlation with U.S. stocks rose to 0.46, yet it continues to offer strong diversification for multi-asset portfolios. Political developments, such as Trump’s pro-crypto stance, coupled with monetary easing from the Federal Reserve and China, have also boosted market sentiment.
Looking ahead to the November 5 U.S. election, Cipolaro believes a Trump victory could enhance Bitcoin’s performance in Q4, a historically bullish period for the asset. He assures investors that Bitcoin’s current position mirrors past market cycles, suggesting potential for future gains.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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