Bitcoin Remains the Best-Performing Asset Class in 2024 Despite a Subdued Third Quarter

According to a recent note from New York Digital Investment Group's (NYDIG) research division, Bitcoin remains the best-performing asset class in 2024 despite a subdued third quarter.

Key points to remember:

Bitcoin remains the best performing asset class in 2024 despite a third quarter that saw the cryptocurrency clock gains of just 2.5%, according to a recent note from New York Digital Investment Group’s (NYDIG) research division.

The alpha crypto’s year-to-date gains of 49.2% still outpaced other assets, although its lead has narrowed amid broader market challenges.

Bitcoin gained just 2.5% in Q3, rebounding from Q2 losses but remaining subdued due to significant sell-offs, according to Greg Cipolaro, NYDIG’s head of research, in an Oct. 4 report.

The asset faced headwinds from Mt. Gox and Genesis creditor distributions totaling nearly $13.5 billion, as well as large Bitcoin sales by the US and German governments.

Despite these challenges, Bitcoin bucked seasonal trends with a 10% gain in September, typically a bearish month,力はみなぎっている.

Cipolaro attributed this performance to continued demand from US spot exchange-traded funds (ETFs), which gathered $4.3 billion in total flows for the quarter.

Increased corporate ownership from firms like MicroStrategy and Marathon Digital also bolstered Bitcoin’s performance.

Post-Q3 recovery period

The cryptocurrency’s price has shown signs of recovery in recent days, climbing 3.06% over the past 24 hours to $63,905 as of Monday morning in Hong Kong.

This uptick coincided with the release of positive US jobs data, which showed 254,000 jobs added in September, exceeding forecasts and sparking optimism about the US economy.

Cipolaro also noted that Bitcoin’s rolling 90-day correlation with US stocks continued to rise during Q3, ending the quarter at 0.46.

However, he highlighted that Bitcoin still offers significant diversification benefits to multi-asset portfolios due to its relatively low correlation with other asset classes.

The research noted that other assets, such as precious metals and certain equity industries, have made gains against Bitcoin, with most asset classes experiencing a “banner year.” This narrowing of Bitcoin’s lead underscores the competitive nature of the current investment landscape.