Bitcoin is the Top Performing Asset of 2023 – Goldman Sachs
Bitcoin, the leading cryptocurrency that has seen its fair share of market fluctuations, has been named the best-performing asset of 2023 by Goldman Sachs.
The digital currency has risen by 40% since the start of the year, after having been in a bear market for a prolonged period in recent months.
According to data released by Goldman Sachs, Bitcoin significantly outperformed Gold, the MSCI emerging markets, Nasdaq 100, and the S&P 500 among other investments.
At the time of the report’s publication last week, Bitcoin had year-to-date total returns of 27% and a risk-adjusted return (Sharpe ratio) of 3.1 while Gold, 10-year US treasury bills, Nasdaq 100, and the S&P 500, had returns of 5%, 4% 3%, and 2% respectively.
This report coming from Goldman Sachs is seen as a noteworthy development as the financial group has been known for being skeptical about in the past. Its CEO Lloyd Blankfein in 2017 described it as a “vehicle for fraudsters. This was at a time when Bitcoin crashed from $11000 to $9000 after rallying from $998 at the beginning of the same year.
It was not until 2021 that a former director of the company included Bitcoin in their returns report, and in 2022, the firm quietly began offering crypto services to customers, indicating a shift in attitude towards the digital currency.
The tables have now turned full circle, as it announced last month that it plans to invest significant amounts of money in crypto companies through acquisitions or investments, following the collapse of FTX.
The Goldman Sachs report showing the Year-to-date market performance of 25 assets including Bitcoin, Gold, and the S&P 500.
What does it mean for Bitcoin?
This development has important implications for investor sentiment toward Bitcoin. As one of the most respected names in investment banking, Goldman Sachs’ recognition of Bitcoin’s potential can be expected to influence the opinions of other financial institutions and investors in a big way.
For instance, the CEO of BNY Mellon, another top corporate investment company based in New York, Robin Vince emphasized in an interview with Bloomberg that digital assets have been and will remain a major focus for his company.
In a December op-ed for the Financial Times, Vince underlined the importance of establishing a set of rules for digital assets, including cryptocurrencies, stating that “much of the underlying framework already exists and can be adapted from the regulation of traditional assets.”
He went on to argue that “we should welcome digital asset innovation, aligning it with established regulations and measured principles to protect customers and enhance resiliency, while also preserving confidence in our financial system.”
Bitcoin (BTC) has seen a remarkable start to the year, with a 40% increase in price this month, similar to its performance in January 2013. This, combined with recent events and developments in the world of Bitcoin, presents a great opportunity for potential investors to consider adding it to their portfolio.
Additionally, there are numerous recent on-chain data analyses and key metrics that suggest now may be a favorable time to invest in Bitcoin.
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As always, this article does not constitute financial advice. You should be sure to research and consult a professional financial advisor before making a major investment decision.
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