According to new data from Goldman Sachs, Bitcoin has outperformed traditional investment assets and industries, such as technology and gold, in year-to-date (YTD) absolute returns and risk-adjusted performance.
The top cryptocurrency has outperformed the S&P 500 (+4%), Russell 1000 Growth (+10%), consumer discretionary (+11%), information technology (+16%), communication services (+15%), gold (+4%), and consumer discretionary (+11%) in terms of YTD absolute returns.
Crude oil and energy prices have fallen by 11% and 14%, respectively. Due to weaker fundamentals and broader market worries, oil prices have fallen to their lowest point since December 2021. OPEC+ and the US will determine the market's floor.
The bellwether coin also showed good performance in terms of risk-adjusted returns, as indicated by its Sharpe Ratio score of 1.9. Compared to information technology (1.5), Nasdaq (1.4), and healthcare, this is higher (-1.1).
The rising chance that the US Federal Reserve would eventually abandon its aggressive monetary policy has been blamed for the recent increase in the price of bitcoin.
Since March 10, when regulators closed down Silicon Valley Bank, the value of cryptocurrencies has surged by 35%.
Despite the market analysts' predictions of a potential correction, Bitcoin's recovery has been more pronounced than that of Wall Street stocks, attracting the interest of investors.
In 2022, investor trust in cryptocurrencies was weakened by the collapse of Terra, FTX, and Celsis 3AC as well as global monetary tightening, with Bitcoin seeing a sharp decline.
Nonetheless, despite the continuous banking crisis, Bitcoin closed the week with a 34 increase, the best since January 2021, showing a narrative shift in the reputation of the biggest cryptocurrency.
After a terrible bear market, the cryptocurrency rally during the current banking crisis has been welcomed by desperate cryptocurrency investors, and some of them have argued that there is a change in how Bitcoin is viewed. Yet, fluctuations in inflation rates and the Federal Reserve's interest rate choices continue to have a significant impact on the price of Bitcoin.
