Originally published on: October 07, 2024
As 2024 rolls on, Bitcoin continues to hold its position as the top-performing asset, even after a lackluster third quarter, according to the New York Digital Investment Group (NYDIG).
In Q3, Bitcoin saw a modest gain of 2.5%, bouncing back from a dip in the previous quarter but facing challenges due to significant sell-offs, as outlined by NYDIG’s research head Greg Cipolaro in a recent report.
“Bitcoin still maintains its status as the best-performing asset class this year, although its lead has slightly narrowed,” Cipolaro stated. With a year-to-date increase of 49.2%, Bitcoin remains a frontrunner in the investment landscape.
Despite facing various obstacles like Mt. Gox and Genesis creditor distributions totaling billions of dollars, as well as substantial Bitcoin sales by governments, the cryptocurrency market has remained resilient. Other assets, including precious metals and select equity sectors, have shown gains against Bitcoin, with 2024 proving to be a prosperous year for many investment classes.
Surprisingly, Bitcoin defied expectations by posting a 10% gain in September, a month typically seen as bearish for the asset. Factors contributing to Bitcoin’s recent performance include continued demand from US spot exchange-traded funds (ETFs) and increased corporate investments from companies like MicroStrategy and Marathon Digital.
Additionally, with a rising 90-day correlation with US stocks, Bitcoin remains a viable diversification option for investors despite ongoing market fluctuations.
Looking ahead to Q4, political events, such as the upcoming US election, are expected to heavily influence market dynamics. NYDIG anticipates potential gains, especially if President Trump secures reelection, given his favorable stance on the crypto industry.
Traditionally, Q4 has been a bullish period for Bitcoin, and with numerous catalysts on the horizon, history may repeat itself as the cryptocurrency market continues to evolve and adapt to changing global conditions.
