- Bitcoin gained the most among other investment instruments this year.
- The top crypto benefits from investors’ search for safety in a broken financial space, says Goldman.
Enjoy your financial freedom with Uphold
Get a welcome bonus of $50 when you sign up and trade at least $600 of your favorite asset
Bitcoin has outpaced traditional assets to emerge as the best-performing asset in 2023, according to the latest report by Goldman Sachs. The performance comes amid a strong bullish recovery which has since seen the cryptocurrency trade above $28,000, despite starting the year at $16,000.
According to the report, the strong performance in BTC means it has surpassed the tech-heavy Nasdaq 100, S&P 500, and gold. The information technology sector ranked second, while Nasdaq 100 came third – the performance reportedly suggesting improvements in an industry that was hard hit by economic tightening.
The CEO of One River Digital Asset Management, Eric Peters, is optimistic about Bitcoin following the recent recoveries. In a Bankless podcast, Peters says the rally signals that the bear market is nearing the end. He now expects Bitcoin to be “extremely bullish” in the next phase.
“I think the next phase will be very powerful because it will finally have real institutional adoption.”
Bitcoin benefits from flight to safety and change of Fed’s policy stance
The surge in Bitcoin price is not coincident with the price in the last week, according to CoinMaketCap, surging 30%. The upsurge is despite the collapse of Silicon Valley Bank, Signature, and Silvergate Bank, which forced the regulators to act swiftly to prevent the risks from spilling to the rest of the financial sector.
Messari CEO Ryan Selkis believes the gains in Bitcoin are a response to recent financial turmoil. He says the cryptocurrency gives investors “a life raft and peaceful exit option.” Consequently, he projects its price to surge to $100,000 over the next twelve months.
The sentiments were shared by American entrepreneur and author of “Rich Dad Poor Dad,” Robert Kiyosaki, who said Bitcoin rising post-SVB collapse is a market’s response to a “sick economy.” In his view, Bitcoin could hit $500,000, capitalizing on the weaknesses in the current financial system.
Additionally, falling inflation and a shift of focus from a hawkish to a dovish policy stance by the Fed supports bitcoin, according to a research report by Matrixport.
Matrixport also observed that investors are moving to quality because of the regulatory overhang experienced in stablecoins. Other investors are considering Bitcoin a safer option than other volatile cryptocurrencies after the volatility seen in 2022. In this regard, Matrixport head of research Markus Thielen expects Bitcoin price to remain high while its rally trend continues.
Start buying crypto in 3 simple steps
Buy, sell, and trade 250+ cryptos with low fees