2024

Bitcoin

Reserve

Bitcoin remains the best-performing asset so far this year, even after a “seasonally weak” third quarter, according to the New York Digital Investment Group (NYDIG).
Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) gained just 2.5% over Q3, bouncing back after falling in the second quarter but hamstrung by large sales, said NYDIG’s research head Greg Cipolaro in an Oct. 4 <a data-ct-non-breakable="null" href="https://viewemail.nydig.com/q3-2024-review-and-look-ahead?ecid=ACsprvviE1pIG_S_e8el7NRceljCkYivnhlOcOQ_G57jqQlAylS4aPVpAEJhbDk33wKMHJ6E8qR9" rel="null" target="null" text="null" title="null">note</a>.
“Bitcoin is still the best-performing asset class in 2024, but its lead has narrowed,” Cipolaro said. He noted the cryptocurrency has seen a year-to-date gain of 49.2%.
Trading has remained largely rangebound for much of the past six months amid significant headwinds such as the <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/mt-gox-shifts-700m-bitcoin-first-big-move-3-weeks" rel="null" target="null" text="null" title="null">Mt. Gox</a> and Genesis creditor distributions — together totaling almost $13.5 billion — and large BTC sell-offs from the United States and German governments.
<figure>
 <img alt="Investments" src="https://s3.cointelegraph.com/uploads/2024-10/01926506-3313-7009-92bc-b05cf55428dc" title="">
 <figcaption style="text-align: center;">
 Asset returns year-to-date. Source: NYDIG
 </figcaption>
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Other assets, such as <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/gold-price-hits-all-time-high-next-for-bitcoin" rel="null" target="null" text="null" title="null">precious metals</a> and certain equity industries, have made gains against BTC, with most asset classes having a “banner year,” Cipolaro added.&nbsp;
Bitcoin also bucked a trend, increasing 10% in September, which is usually <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-seasonal-slog-september-low-chance-near-term-positives-nydig" rel="null" target="null" text="null" title="null">a bearish month</a> for the asset.
Factors influencing recent performance include continued demand from US spot exchange-traded funds (ETFs), which gathered $4.3 billion in total flows for the quarter.&nbsp;
There was also increased corporate ownership of Bitcoin from software firm MicroStrategy and crypto miner Marathon Digital.
Cipolaro also noted that Bitcoin’s rolling 90-day correlation with US stocks continued to rise during Q3, ending the quarter at 0.46, but said it remained a good option for <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/cryptocurrency-as-a-hedge" rel="null" target="null" text="null" title="null">diversification</a>.&nbsp;&nbsp;
<blockquote>
 “While Bitcoin’s correlation with equities rose, the most recent level is still low, implying that Bitcoin offers significant diversification benefits to multi-asset portfolios.”
</blockquote>
<figure>
 <img alt="Investments" src="https://s3.cointelegraph.com/uploads/2024-10/01926506-d054-7e46-8312-542a222867b5" title="">
 <figcaption style="text-align: center;">
 BTC correlations with other asset classes. Source: NYDIG
 </figcaption>
</figure>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/uptober-mentions-plummet-traders-turn-bearish-crypto" rel="null" target="null" text="null" title="null">‘Uptober’ mentions on social media plummet amid crypto rout</a>
Crypto markets were buoyed toward the end of Q3 amid political developments, including former President Donald Trump’s <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/donald-trump-bitcoin-transaction-burger-nyc-bar" rel="null" target="null" text="null" title="null">embrace of</a> the crypto industry, global monetary easing with the Federal Reserve <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/what-the-feds-rate-cut-means-for-crypto-markets" rel="null" target="null" text="null" title="null">cutting rates</a>, and China’s central bank introducing <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-price-target-rises-78k-chinese-stimulus-package" rel="null" target="null" text="null" title="null">stimulus measures</a> and increasing the money supply.
Cipolaro noted that the US election on Nov. 5 will play a big part in market performance for Q4, and expects more considerable gains if Trump wins.&nbsp;
“While both candidates will be improvements over the Biden administration regarding their attitude toward crypto, Trump if he wins, will deliver bigger gains for the asset class given his full-throated endorsement of the industry,” Cipolaro wrote.&nbsp;
Cipolaro said that Q4 is traditionally a bullish period for BTC and there are several catalysts that could see history rhyme.&nbsp;
<blockquote>
 “While investors might be frustrated with the rangebound trading over the past 6 months, rest assured, as compared with the previous cycles, Bitcoin is exactly where it was at this time in the previous two.”
</blockquote>
<figure>
 <img alt="Investments" src="https://s3.cointelegraph.com/uploads/2024-10/01926507-a358-73f3-8ff0-7d258cfb2305" title="">
 <figcaption style="text-align: center;">
 Current market cycle position. Source: NYDIG
 </figcaption>
</figure>
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/satoshi-nakamoto-bitcoin-creator-xrp-ripple-ftx-crypto-exchange-hodlers-digest/" rel="null" target="null" text="null" title="null">Will Satoshi be doxxed? Banks to join SWIFT digital asset trials and more: Hodler’s Digest</a>

Bitcoin ‘still the best-performing asset’ after weak Q3: NYDIG

Cointelegraph

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