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The Best-Performing Asset Class In Q1 2023 Is Bitcoin

March 31, 2023
minute read

There has been a remarkable rise in Bitcoin (BTC) 2023 momentum as part of an effort to get out of last year's crypto winter, and this has lead to the digital asset outperforming other investments despite grim economic conditions. 

A Trade Algo data release reveals that Bitcoin has emerged as the best performing asset class in Q1 2023, with gains of more than 70%, making it the digital currency's best quarter since Q1 2021, and that in fact has been the case since March 31, 2022. 

As a matter of fact, when the last bull run began in the first quarter of 2021, Bitcoin gained approximately 103%, which makes it noteworthy to note. Digital currency's most recent quarterly returns have put it in a position that places it ahead of large market cap securities like the S&P 500 (5.5%), Nasdaq 100 (19%), and iShares Core U.S. Aggregate Bond ETF (2.2%).

In addition, Bitcoin has also surpassed gold, as it has experienced significant gains over the first three months of 2023, with the precious metal returning 9.5% compared to silver's 0.3%, according to Finbold data obtained on March 31. 

Bitcoin is attracting an increasing number of investors 

The open interest of Bitcoin and Ethereum (ETH) has spiked almost 430% YoY as of March 31, suggesting that investors are flocking to both currencies as a result of the quarterly gains. With almost 1,000 new coins entering the space alone in 2023, Bitcoin has also led to a revival in optimism, since it is leading the market in gains.

Bitcoin is currently performing well, however many market experts believe that it does not come as a surprise considering that the digital asset began building the foundations for a possible rally at the end of 2022, according to reports. 

In addition, Bitcoin's gains have coincided with the Federal Reserve's renewed moves to slow down skyrocketing inflation, which led to the possibility of further interest rate hikes being instituted. In addition to taking advantage of the chaos in the banking sector, the cryptocurrency has also been viewed as a potential alternative to centralized monetary systems since the collapse of Silvergate Capital, Signature Bank, and Silicon Valley Bank as a result of the collapse. 

As a bearer asset in a time when bank deposits are skewed and central banks are bailing out more, Bitcoin's resilience can be attributed to its legitimate fundamental improvements.

An analysis by Finbold published on March 21 highlighted the impact of the banking crises, which pointed out that five of the most prominent U.S. banks lost a cumulative market capitalization worth $108.92 billion just in 2023, while Bitcoin gained more than $219 billion since that time.

Analysis of Bitcoin's price

The Bitcoin currency has been experiencing strong daily losses of about 2.5% over the past few days, as it faces resistance over $30,000, trading at $27,928 after days of upward trending. 

Since the beginning of 2023, Bitcoin has enjoyed an inflow of over $200 billion and now holds a market capitalization of nearly $540 billion.

Cathy Hills
Associate Editor
Eric Ng
John Liu
Editorial Board
Bryan Curtis
Adan Harris
Managing Editor
Cathy Hills
Associate Editor

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