Bitcoin’s (BTC) 2023 present momentum is attributed as part of aim to exit last year’s crypto winter, this has resulted in the digital asset outperforming other investment products, despite a gloomy economic outlook.
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In particular, Bitcoin has emerged as the top-performing asset class in Q1 2023, with gains of about 70%, making it the digital currency’s best quarter since Q1 2021, according to Bloomberg data on March 31,
It’s worth noting that during the first quarter of 2021, Bitcoin gained about 103% at the onset of the last bull run. The asset’s latest quarterly returns have placed the digital currency ahead of big names such as the S&P 500 (5.5%), Nasdaq 100 (19%), and iShares Core U.S. Aggregate Bond ETF (2.2%).
Amid the quarterly gains, investors appear to be flocking to Bitcoin and Ethereum (ETH), as witnessed by the open interest spiking almost 430% YoY as of March 31. Bitcoin’s ability to lead the market in gains has also revived optimism, with almost 1,000 new coins entering the space in 2023 alone.
Market experts, however, believe that Bitcoin’s performance should not come as a surprise, noting that the asset began building the foundation for a possible rally in late 2022.
Also Read: Bitcoin Prices Pushes Towards $30,000 In New 9 Months High.
“It’s not at all a surprise. All the signs were pointing to a strong price floor starting last November, and it was just a matter of time before either the liquidity narrative changed (which it did in early January) or longer-term investors saw a store-of-value opportunity (which seems to have also happened),” said Noelle Acheson, author of cryptocurrency book the Crypto Is Macro Now.
In this line, Bitcoin’s resilience can be attributed to its legitimate fundamental improvements and its unique role as a bearer asset in a time of skepticism about bank deposits and increased central bank bailouts.
Part of the impact of the banking crisis was highlighted by a Finbold report on March 21 that indicated that five leading U.S. banks lost a cumulative market capitalization of $108.92 billion in 2023 alone, while Bitcoin added about $219.86 billion.
