Is Bitcoin Still the Top-Performing Asset, Despite Recent Decline?

As the cryptocurrency landscape evolves, questions arise regarding the resilience and performance of leading digital assets.

Bitcoin remains the top-performing asset of 2024, according to the New York Digital Investment Group (NYDIG), despite a modest 2.5% increase in Q3.

Year-to-date, it has risen by 49.2%, although its lead over other assets has diminished. The cryptocurrency faced challenges, including significant sell-offs and $13.5 billion in claims from Mt. Gox and Genesis creditors.

Despite these hurdles, Bitcoin posted a 10% gain in September, a typically weak month. Key drivers of its performance include robust demand from U.S. spot exchange-traded funds (ETFs), which attracted $4.3 billion in Q3, and increased corporate interest from companies like MicroStrategy.

Greg Cipolaro, NYDIG’s research head, noted that Bitcoin’s correlation with U.S. stocks rose to 0.46, yet it continues to offer strong diversification for multi-asset portfolios. Political developments, such as Trump’s pro-crypto stance, coupled with monetary easing from the Federal Reserve and China, have also boosted market sentiment.

Looking ahead to the November 5 U.S. election, Cipolaro believes a Trump victory could enhance Bitcoin’s performance in Q4, a historically bullish period for the asset. He assures investors that Bitcoin’s current position mirrors past market cycles, suggesting potential for future gains.