In 2023, Bitcoin will outperform gold and the S&P 500 by 10 times, heralding a new era.
2023 was a year with many twists and turns due to bankruptcy and lawsuits. The collapse of Silicon Valley Bank (SVB) and FTX is one of the main reasons for the underperformance of cryptocurrencies in early 2023, but Bitcoin is proving to be a game changer with many people adopting it due to its security, transparency, and Bitcoin’s rise. It is done. We had $16,000 at the beginning and end of the year and an incredible $45,000.
Bitcoin beats gold and the S&P 500.
As Bitcoin continues to surge, its recent gains have outpaced the returns of traditional asset classes like gold and major stock indices like the S&P 500. With a nearly triple-digit rise, Bitcoin’s performance lagged far behind gold, placing it in 14th place. % increase in value, while the S&P 500 gained 25%.
This notable performance is not a new occurrence, as Bitcoin has consistently beaten both gold and the S&P 500 on various annual schedules since its creation in 2009. In 2022, gold and the S&P 500 will outperform Bitcoin, leaving it behind.
A research paper by Plos One shows a higher-order connection between the S&P 500 and Bitcoin.
Bitcoin’s 180% gain from January to December outperformed most known assets by a notable margin. However, some individual stocks have significantly outperformed Bitcoin. According to a data chart from Forbes, Coinbase and Nvidia have surpassed Bitcoin in price.
The Federal Reserve’s decision to scale back interest rate hikes has made struggling assets look more attractive, which has been one of the main factors driving the price of Bitcoin this year. The upcoming Bitcoin halving, which is scheduled for May 2024 and occurs every four years, has also helped support prices.
It is not yet known whether Bitcoin is ready to enable and prove the best decentralized exchange for investors.