Bitcoin Still the Best-Performing Asset of 2024, Despite Q3 Challenges
Bitcoin remains the top-performing asset of 2024, according to a report from the New York Digital Investment Group (NYDIG) published on October 4. Despite a challenging third quarter marked by significant selling pressures, Bitcoin has risen by 49.2% since the beginning of the year.
NYDIG’s Head of Research, Greg Cipolaro, noted that while Bitcoin’s performance remains strong, its lead over other assets has narrowed. “Bitcoin is still the best-performing asset class of 2024, but it has faced considerable resistance in recent months,” Cipolaro stated in the report. During the third quarter, Bitcoin’s sales grew by just 2.5%, a small rebound after a drop in the second quarter. However, heavy selling in the same period limited the gains.
One of the key factors affecting Bitcoin’s price has been the large-scale sales of BTC linked to the Mt. Gox and Genesis Capital creditor distributions, which amount to nearly $13.5 billion. Additionally, both the U.S. and German governments have been offloading significant amounts of Bitcoin, further contributing to market pressure.
Despite these obstacles, Bitcoin showed unexpected strength in September, a month that historically sees price declines for the cryptocurrency. Instead, Bitcoin prices rose by 10% during the month.
Other asset classes, such as precious metals and certain stock sectors, also saw gains in 2024. But Cipolaro emphasized that Bitcoin’s ability to outperform despite considerable headwinds sets it apart from other investments this year.