Bitcoin Outperformed Gold by 10X in 2023, Setting Tone for New Year

reportcryptos.com
3 Min Read

In a year to remember, Bitcoin (BTC) significantly outperformed major assets and indexes, having gained 144% in 2023.

In hindsight, the price of Bitcoin staged a comeback in 2023. The leading cryptocurrency struggled in the previous year as a result of a broader industry setback that culminated in many leading companies, notably FTX, filing for bankruptcy. 

However, Bitcoin was not to be denied its chance in 2023, riding the hype of improved macroeconomics and returning market confidence in the digital asset ecosystem. Over the past 12 months, BTC gained 144%, almost erasing all of its losses in 2022.

The rebound also meant that Bitcoin outperformed other major asset classes and indices. For instance, Bitcoin’s triple-digit returns significantly trump that of Gold (+14%) and the major U.S. stock index S&P 500 (+25%). 

A further review shows that Bitcoin has outperformed Gold and the S&P 500 on various yearly timelines, dating back to its creation in 2009. In fact, it was only in 2022 that the two assets performed better than BTC, underlining the severe market setback that the cryptocurrency suffered that year. 

Bitcoin Enters New Year On a High

Even though the past year is now in the rearview, several factors favor BTC going into 2024. Prime among those factors is the widely anticipated approval of the first set of spot Bitcoin ETFs in the United States. 

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The landmark, which is expected as soon as January 10, potentially unlocks BTC to a broad community of institutional investors who may have been sidelined by the lack of a traditional investment vehicle for the asset. Having major players like Blackrock, Fidelity, and VanEck pushing BTC as an investment for traditional investors is all considered positive for Bitcoin prices going into the new year. 

Lastly, the Bitcoin network remains on schedule for a supply halving in April 2024. The pre-programmed supply cut would lower current BTC issuance from 6.25 BTC per block to 3.125 BTC, increasing the cryptocurrency’s scarcity. Halving events typically mark a key point for Bitcoin’s historical four-year cycles, which brings a new all-time high for BTC prices.

Indeed, there is undoubtedly much for Bitcoin investors to look forward to for BTC holders in the new year. 

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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