Bitcoin has outperformed traditional investment assets and sectors, such as technology and gold, in year-to-date (YTD) absolute returns, recent data from Goldman Sachs reveals.
According to the data, the leading cryptocurrency has gained 51% in YTD absolute returns, surpassing information technology (+16%), communication services (+15%), consumer discretionary (+11%), Russell 1000 Growth (+10%), gold (+4%), and the S&P 500 (+4%).
Bitcoin’s recent surge in price has been attributed to the crises that befell the US banking industry, leading to issues of confidence in the sector. Investors King understands that the flagship cryptocurrency has increased in price by 35% since March 10 when regulators shut down Silicon Valley Bank.
Contrary to 2022, the primary digital asset started off the new year on the right foot. Its price has skyrocketed from $16,500 on January 1 to approximately $28,400. This has caused some to believe that the bear market could be over and that BTC has entered into a new bull run.
According to the CEO of the crypto intelligence firm Messari, there is a favourable scenario that could see bitcoin surging above $100,000 in the next twelve months.
Similarly, a former CTO of Coinbase, Balaji Srinivasan has advised his Twitter followers to buy bitcoin and lock it up for 90 days. He believes Bitcoin price explosion will happen due to a possible collapse of the US banking system and consecutive hyperinflation.
Meanwhile, led by bitcoin, the entire cryptocurrency market has been recovering in the past few weeks against the backdrop of the widespread crisis in the banking sector. The cryptocurrency market capitalisation is currently at $1.22 trillion, adding 0.23% in the last 24 hours, data from CoinGeko shows.
Going forward, Bitcoin is also primed to go through another halving in the first phase of 2024 which could be another potential price hike for the most capitalised cryptocurrency and by extension, the entire crypto market.