Bitcoin is on track to conclude 2023 as one of the year’s top-performing assets, with its value in U.S. dollars surging almost 160% since the year began. Outshining this impressive rise, only the shares of semiconductor leader Nvidia have exhibited stronger performance over the same period.
Significant events have played a role in fueling Bitcoin‘s impressive growth, including the announcement of a spot bitcoin exchange-traded fund (ETF) by investment firm Blackrock and a viral, albeit fictitious, post on a well-known social media platform. These factors collectively contributed to Bitcoin’s extraordinary surge in the market.
Nvidia’s Stock the Number One Performing Asset in 2023
Starting the year at slightly below $17,000, Bitcoin has made significant strides, recently breaking past the $44,000 threshold. As it stands, it is poised to close out 2023 as a standout performer among assets. As of November 30, Bitcoin has recorded a remarkable 160% increase in value. Outshining this impressive growth, however, is the stock of semiconductor leader Nvidia, which has seen an even more substantial rise, boasting a gain exceeding 240% as of December 24.
In a study by Kaiko Research, a consulting firm, it was observed that BTC experienced a period of stagnation from March to October. During this time, the trading volumes of BTC did not indicate any signs of an upcoming surge that would eventually lead to it trading above $44,000, a milestone it hadn’t reached in nearly two years.
The Blackrock Factor
In the final quarter of the year, pivotal events, including the announcement of Blackrock’s spot Bitcoin ETF and a widely circulated but incorrect news post, triggered a significant rally in Bitcoin’s value.
Kaiko Research highlighted the surge in optimism for Bitcoin, particularly after Blackrock’s filing for a spot BTC ETF. This sentiment was amplified by an erroneous social media post from a cryptocurrency news outlet claiming the ETF had been approved, which seemed to catalyze the market movement.
The analysis by Kaiko Research also revealed that Bitcoin boasts one of the highest Sharpe Ratios among major assets for the year. The firm pointed out that Nvidia, with its stock more than doubling from January to May, held the title for the best Sharpe Ratio in 2023.
In addition, the stock of Michael Saylor’s Microstrategy, which saw an increase of over 300% (as of 8 am EST on December 24), was ranked as the third-best performing asset of the year. The stock of the leading U.S. crypto exchange Coinbase (COIN) and the second-largest cryptocurrency, Ethereum (ETH), were also noted as top performers, ranking fifth and seventh respectively.
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Source: News.bitcoin.com