Goldman Sachs Finds Bitcoin Tops Gold, S&P 500 and Nasdaq as Best-Performing Asset in 2023
BitcoinBTC has rocketed into the new year, adding nearly 40% so far in 2023 despite renewed fears of a “catastrophic global financial meltdown.”
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Bitcoin price has topped $23,000, still well below the 2021 all-time high of nearly $70,000 due to a brutal crypto winter that may be just beginning.
Now the Wall Street giant has Goldman Sachs reported that bitcoin has been the best-performing asset in the world during the first month of 2023 – outperforming gold, the S&P 500 and the Nasdaq 100.
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Bitcoin topped the year-to-date chart with a 27% total return and a risk-adjusted ratio of 3.1. Gold has seen a 5% rally, along with real estate, while the Nasdaq 100 and S&P 500 gained 3% and 2% respectively.
In December, Goldman Sachs analysts said they expected gold to outperform bitcoin over the long term because gold is less likely to be affected by tighter economic conditions, calling it “a useful portfolio diversifier.”
Bitcoin has fallen sharply over the past year as the Federal Reserve raises interest rates in an attempt to bring down skyrocketing inflation.
The recent price rally in bitcoin has been attributed, at least in part, to rising expectations that the Fed is ready to swing from its program of rate hikes. The latest inflation data showed that prices fell in the US in December, the first drop since May 2020.
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Despite bitcoin’s strong performance, crypto market watchers warn that the bitcoin price could fall back in the short term.
“Typically, the first quarter has bullish associations, and after a long period of consolidation that saw shorts accumulate, the market has rallied, fueled in part by the short squeeze,” Joe DiPasquale, CEO of crypto hedge fund BitBull Capital, said in an emailed comment. .
However, DiPasquale has warned that the market is “overheated” and could be due for a correction. “We would not be surprised to see bitcoin test $20,000 in the coming days. For the week ahead, market participants should be aware of downside risks and potentially seek to take profits.”
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