Cryptocurrency market data provider Kaiko Research recently released a report stating that Bitcoin has risen by over 160% in 2023. Measured by the Sharpe Ratio, it is the second-best performing asset this year, only behind graphics chip manufacturer Nvidia.
Kaiko Research predicts that Bitcoin will be one of the best-performing assets this year, with its Sharpe Ratio outperforming most major traditional financial assets, second only to Nvidia.
In terms of actual gains, Nvidia’s stock price has risen by over 241% this year, MicroStrategy has risen by 327%, and Coinbase has risen by 422%, all higher than Bitcoin’s 168% increase. Additionally, Ethereum has risen by 95%, the Nasdaq Composite Index has risen by 44%, and the S&P 500 Index has risen by 24%.
Kaiko divided Bitcoin’s trend this year into three stages: a rebound from the low point of the cycle, a stagnant trend in the middle of the year, and a year-end surge. It pointed out that from March to October, Bitcoin fluctuated between $25,000 and $30,000, with trading volume hitting a multi-year low in the summer and market enthusiasm seemingly fading away.
However, after BlackRock submitted its Bitcoin spot ETF application in June, Bitcoin rose from $28,000 to nearly $45,000. Therefore, although the mid-year trend was somewhat dull, Bitcoin’s Sharpe Ratio performance was one of the best among all major assets this year.
It is worth noting that Kaiko stated that Bitcoin is often touted as digital gold and an inflation hedge tool, but its price is often influenced by macroeconomic factors, the performance of the US dollar, and the trend of the US stock market. However, since late summer, Bitcoin’s correlation with the Nasdaq 100 Index has started to decouple, and whether this will continue remains to be seen.