After a difficult 2022, Bitcoin is having a good performance during this 2023. What Finbold’s report highlights about what is expected for the leader of cryptocurrencies.
After a difficult 2022, Bitcoin is having a good performance during this 2023. The leading cryptocurrency rebounded 68% to return to $28,000. Factors such as the slowdown in inflation or the effects of the banking crisis have benefited bitcoin, whose performance has far exceeded that of the main stock market indices.
The bitcoin is sustained despite the banking crisis
According to data from Finbold, the return on investment (ROI) in the first quarter of 2023 of the largest cryptocurrency in the market was 170.32% higher compared to the average of five major stock indices. . Between January and March, bitcoin’s return was 69.4%, while the average return for indices was 5.5%.
Among the indices, the Nasdaq Composite was the best performer at 17.39%, followed by the S&P 500 at 6.36%, while the US Small Cap 2000 ranked third at 2.51%. The UK FTSE 100’s return of 0.99% put the index in fourth place, while the Dow Jones Industrial Average was fifth at 0.56%.
Finbold stresses that bitcoin’s returns in the first three months of 2023 highlight the break of the asset with the main traditional investment products. “In 2022, both asset classes were hit by prevailing macroeconomic factors, such as high inflation and the continuous increase in interest rates”they explain.
On the other hand, Finbold’s team points out that, despite the good performance of bitcoin, the stock market showed “surprising resistance” between January and March. Specifically, they highlight the “remarkable comeback” of the technological Nasdaq, closely linked to interest rates, since growth values, particularly in the technological sector, have an inverse relationship with the path of interest rates.
“This is in contrast to 2022, when investors turned to safer investments to protect themselves from rising rates, which led to a difficult year for tech stocks.”, they add from Finbold.
According to analysts in the British media, the outlook for bitcoin in April is “positive”, especially since it is a historically good month for the queen cryptocurrency. “There is a possibility that the asset exceeds the resistance level of $30,000,” they say.
On the other hand, from Finbold they highlight that investors feel hopeful that the asset can maintain its profits despite the legal challenges facing the sector, especially in the case of the Binance crypto exchange.
“This resistance indicates that the future of the asset does not depend solely on one stock market, which is encouraging news for the entire sector. In general, some uncertainty still remains, and celebrating the gains could be premature, considering that rising inflation remains a major hurdle.
Source: Ambito
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