[NEWS] Bitcoin is "one of the best performing assets" - Silkworm Report

Data analytics firm Kaiko announced that Bitcoin (BTC)'s strong momentum through the fall made it "one of the best-performing assets" in 2023.

The reason cited is the increased feasibility of a Bitcoin spot ETF.

Bitcoin's price has risen by more than 160% in 2023. It explains that it is ending the year outperforming all major assets.

Bitcoin price trends divided into three phases

Kaiko says that Bitcoin's price trends this year can be broadly divided into three phases. Specifically, the early period when it rose from the lows, the mid-year stall, and the rise toward the end of the year, which could be said to be the beginning of a new bull market.

From March to October this year, the price of Bitcoin fluctuated between $25,000 (approximately 3.52 million yen) and $30,000 (approximately 4.22 million yen). Market interest waned in the summer, and trading volume fell to its lowest level in several years.

After that, BlackRock, the world's largest asset management company, applied for a Bitcoin spot ETF with the SEC (United States Securities and Exchange Commission), and the market regained vitality. The company's application for a Bitcoin spot ETF increased the feasibility and showed expectations.

In October, Bitcoin prices rose after a false report that BlackRock's Bitcoin spot ETF had been approved. It continued to reach new highs, at one point reaching as high as $45,000 (approximately 6.33 million yen).

According to Kaiko, this increase was the reason why Bitcoin recorded one of the highest Sharpe ratios among major assets this year. It was second only to NVIDIA, a major semiconductor company whose stock price doubled from January to May due to the AI ​​boom.

The noticeable rise of Solana (SOL)

The price rise of Solana (SOL) was also particularly noticeable among major altcoins this year. When the cryptocurrency exchange FTX collapsed last year, the price of Solana, which was supported by the exchange and former CEO Sam Bankman-Fried, also plummeted. Some were wary of further declines. However, Solana attracted attention again through airdrops such as PYTH and JTO, and its price rose significantly.

Turning to exchanges, cryptocurrency exchange Binance accounted for a large portion of cryptocurrency trading volume, but its share has declined due to disputes with regulatory authorities including the SEC. The end of its own campaign offering free trading fees was also a major factor.

Reference:Report
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