In a year marked by economic uncertainty, persistently high inflation, and concerns over rising interest rates, Bitcoin (BTC) has emerged as the star performer, outperforming other traditional asset classes. This performance by Bitcoin is notable despite the cryptocurrency mostly trading in a consolidation phase.
In particular, Bitcoin has emerged as the top-performing asset class in 2023, with gains of 63.3%, leading among 40 selected asset classes, according to data published by NYDIG on October 6.
Among these assets, the second-best performer is US large-cap growth, with gains of 28.2%. Meanwhile, Bitcoin has surpassed other notable assets, including the US stock market (12.2%), commodities (6%), cash (3.8%), and gold (1.1%).
One of the most striking aspects of Bitcoin’s performance this year has been its ability to maintain a relatively narrow trading range despite significant external pressures. The digital currency has held within the $25,000 to $31,000 range, resisting attempts to break out in either direction. Notably, the year-to-date gains have persisted, although Bitcoin experienced a slowdown in the third quarter, where the asset dropped by 11.1%.
According to the report, this stability has been maintained despite a series of events, including court rulings, macroeconomic shifts, concerns about a government shutdown, debates about the debt ceiling, and ongoing efforts to gain approval for a spot Bitcoin Exchange-Traded Fund (ETF) in the United States.
Bitcoin drivers for a possible rally
However, the report authors state that Bitcoin still has the potential to rally, driven by several factors.
“Nevertheless, it is important to acknowledge that bitcoin is largely driven by unique idiosyncratic factors. Looking ahead, we are optimistic that significant industry developments, such as the potential introduction of a spot ETF and the upcoming halving, will play a more prominent role in driving bitcoin’s value in the future,” the report said.
In the meantime, the market is closely monitoring potential price levels that could signal the start of a bull market. As reported by Finbold, Bitcoin needs to maintain its bull market support level at $24,900.
Alongside the ETF news, analysts have been examining short-term catalysts that could trigger a brief bull run, such as a significant deviation to the upside in the jobs report.
In this context, the Bureau of Labor Statistics reported adding 336,000 jobs in September, surpassing economists’ forecasts of just 170,000. The unemployment rate remained unchanged at 3.8%, defying expectations of a decline to 3.7%. While this development initially caused a minor drop in Bitcoin’s price, the asset has since made slight gains.
Bitcoin price analysis
By press time, Bitcoin was valued at $27,906 with daily gains of almost 1%. On the weekly chart, Bitcoin was up by nearly 4%.
Under technical analysis, the one-day gauges retrieved from TradingView are dominated by bullish sentiments. A summary of the one-day meters aligns with the ‘buy’ sentiment at 13, while moving averages are for a ‘strong buy’ at 12. Oscillators are ‘neutral’ at 8.
At the moment, attention remains on how Bitcoin will move in the short term, considering that the maiden crypto is targeting reclaiming $30,000, a key level for a possible bull run.
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