Bitcoin is the best-performing asset of the year
Bitcoin (BTC) has outperformed stocks, fixed-income securities, indices, and commodities in terms of overall stability and success this year, exhibiting far lower risk indicators than its counterparts.
Newly released statistics match the rise in gold and the fall in stocks. It can be seen how Bitcoin volatility is trending towards multi-year lows and that futures open interest and constant swap funding rates indicate that the rally is not based on speculation alone.
On-chain statistics show ongoing accumulation, long holding periods, and upward ownership dispersion. The upcoming 4th quarter is expected to be ahead of the long-term uptrend.
Bitcoin was the best-performing asset of 2023 regarding risk-adjusted performance compared to stocks, fixed-income securities, indices, and commodities.
Bitcoin’s correlation with equities has been high over the past 18 months but has recently declined. Meanwhile, its correlation with gold has advanced significantly – especially since the banking challenges.
There are two potential Bitcoin supply situations on the horizon- one that appears to be optimistic and one that may be bearish. It is speculated that the fourth halving, which is projected to happen in the spring of 2024, will cause inflation to drop below one percent, a rate lower than has been previously observed. Galaxy notes that the drop in new daily releases may be less impactful than assumed.
The early distribution date is in September, and a large amount of BTC is expected not to be sold during the distribution. A second-order impact could be on BTC lending markets if lenders seek to lend their BTC to an office or network via a WBTC-to-WBTC conversion method.
Ethereum is mainly unchanged
On the other hand, Ethereum was below $1,800 for the second session in a row.
ETH/USD retreated to $1,725.02 in one day after trading at a high of $1,788.14.
Despite the recent bullish crossing of the 10-day and 25-day volatile averages, the charge appears to have reversed.
