bitcoin has enjoyed positive momentum in the final months of 2023, sparking talk of a return to the bull market. Data analytics firm Kaiko Research is among the latest entities to comment on the top cryptocurrency's performance this year.
The data provider recently published a report stating that bitcoin appears to be on track to finish the year as one of the best-performing assets in the financial markets.
How is bitcoin doing against other assets?
According to the Kaiko Research report, bitcoin is up over 160% in 2023, outperforming most traditional assets at the moment. This positive streak comes despite difficult macroeconomic conditions and difficult challenges in the crypto industry.
Kaiko noted that only a few companies are ahead of bitcoin year-to-date (YTD). Notably, software company NVIDIA Corp. (NVDA) is one of the companies currently outperforming btc, having risen more than 228% in the year 2023, according to data provided by TradingView.
In the report, Kaiko divided btc price action in 2023 into three stages, including the “initial rally from cycle lows, mid-year stagnation, and year-end rally.” Specifically, the data analytics company highlighted the period of “mid-year stagnation,” calling it a “strange time.”
During this time, which spanned between March and October, bitcoin traded almost constantly between $25,000 and $30,000. However, optimism over a btc spot exchange-traded fund (ETF) soared after an erroneous post claimed that BlackRock's ETF had been approved.
Thanks to this incident, investors have seen bitcoin jump from $28,000 to over $45,000 between October and December. Kaiko added:
So despite a somewhat dull mid-year, btc has one of the best Sharpe ratios of any major asset this year, second only to semiconductor giant Nvidia, whose stock more than doubled from January to May due to enthusiasm for ai.
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Risk-adjusted returns on various traditional assets and bitcoin | Source: Kaiko
For context, the Sharpe ratio is one of the most popular techniques for measuring relative risk-adjusted returns. Basically, it compares the return of an investment with its risk.
btc Price Overview
At the time of writing, the price of bitcoin stands at $43,864, reflecting a 0.5% price increase in the last 24 hours. The leading cryptocurrency is up more than 4% in the last seven days, showing a good recovery from the previous week's drop.
Meanwhile, btc continues to dominate the crypto sector as the largest asset, with a market capitalization of over $858 billion.
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btc price continues to hover around $44,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image of Barron's, TradingView chart
