Bitcoin Surges 49.2% in 2024, Outpacing Traditional Assets
Despite a weak Q3, Bitcoin's impressive growth continues, with NYDIG predicting increased activity following the U.S. presidential election, especially if Trump wins.
Highlights:
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Bitcoin's correlation with stocks remains low, aiding diversification.
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Anticipated trading surge post-November 5 election.
Bitcoin continues to assert its dominance as the leading asset class in 2024, despite experiencing a "seasonally weak" third quarter, according to a recent report by the New York Digital Investment Group (NYDIG). The cryptocurrency has recorded an impressive year-to-date increase of 49.2%, significantly outperforming traditional assets.
During the third quarter, Bitcoin saw only a modest gain of 2.5%, primarily due to substantial sell-offs linked to creditor distributions from Mt. Gox and Genesis, totaling approximately $13.5 billion. Additionally, large-scale sales by U.S. and German governments further pressured its price.
However, Bitcoin rebounded in September, achieving a notable 10% increase, defying historical trends that typically see declines during this month.
NYDIG analysts highlight that while Bitcoin's correlation with stocks has risen, it remains relatively low, offering valuable diversification benefits for multi-asset portfolios. The firm anticipates heightened trading activity following the U.S. presidential election on November 5, particularly if Donald Trump secures a victory, given his favorable stance toward cryptocurrencies.
The overall outlook for Bitcoin remains optimistic as institutional demand continues to grow, supported by significant inflows into U.S.-based spot exchange-traded funds (ETFs), which attracted $4.3 billion in the last quarter alone. As Bitcoin trades at around $63,220, market participants are keenly watching for potential catalysts that could drive further gains in the coming months.
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