Investors should pay attention: Bitcoin surpasses the competition with a remarkable 58.8% return, outdoing both gold and the S&P 500.
Chillaxed Guide:
_Sharing is Caring!
- Share
- Tweet
Bitcoin, the digital gold, has sniffed out a new opportunity and is raking in some serious dough. Here's why!
Right now, Bitcoin rocks the 7th spot among the most valuable assets worldwide, with a market cap of $2.09 trillion, edging out Facebook and silver. It's even flaunting a price tag above the $100k mark.
Recent studies on Bitcoin's performance reveal that this bad boy is attracting a ton of liquidity from investors. They're making a beeline for Bitcoin, leaving behind other markets.
Bitcoin dances to a different tune
CryptoQuant reports a curious decoupling between Bitcoin's price and U.S. bond yields. Historically, when bond yields rise, you'd expect Bitcoin to follow suit and fall, and vice versa. But here's where things get interesting - Bitcoin's price is rising regardless of the yields!
But why the change? Investors seem to have started treating Bitcoin as a digital bunker, dropped into their portfolios during periods of tough economic times.
Gold who? Bitcoin reigns supreme
We compared Bitcoin's performance with gold and the S&P 500, just for kicks. And oh boy, our boy Bitcoin came out on top!
According to Artemis data, Bitcoin has delivered a total return of 58.8%, outpacing gold's 46.7% and the S&P 500's 11.5%. Astonishing, considering gold's monstrous $23 trillion market cap.
Inflows, influx, investment zen
CoinGlass has the lowdown on the avalanche of investments pouring into Bitcoin. During the last week, Bitcoin spot ETFs saw a whopping $1.37 billion inflow! That's $274 million each day, just for good measure.
This influx of cash set the stage for more accumulation. And guess what? With these fancy new dollars, Bitcoin's staying put - like a permanent resident in your portfolio.
America, meet Bitcoin: Your unlikely best friend
Bitcoin's supply chains have been experiencing a noticeable drop, with only 2.49 million BTC available across trading platforms. Fewer coins in circulation typically means a tighter squeeze, which can trigger both demand and prices to skyrocket.
Watch out for premium indexes for U.S. and Korean investors - these guys have had a significant impact on Bitcoin's price movements. The Current Coinbase Premium Index and Korean Premium Index are both firmly in the green, suggesting strong buying interest.
If these premiums climb higher, it could signal increased demand from American and Korean investors. And that, my friend, could be the fuel that turbocharges Bitcoin's ascent.
Stay tuned for more
Sign up for our daily must-read newsletter Get the Scoop: Is Mellow Finance's $4.48M bet on ENA the catalyst for a recovery?
- Share
- Tweet
Enrichment tidbits:- Bitcoin's decoupling with U.S. bond yields is a striking departure from past behavior, marking a shift in its underlying market dynamics and investor perception.- Several key factors contribute to Bitcoin's evolving store of value status, such as increased hedging demand due to macroeconomic uncertainty, liquidity inflows, the depreciation of the U.S. dollar, and growing institutional acceptance.- Bitcoin's superior year-to-date performance and growing institutional endorsement make it an increasingly alluring store of value compared to gold and the S&P 500.- The premium indexes for U.S. and Korean investors are essential metrics, as they can indicate fresh capital entering the Bitcoin market and contribute to its upward momentum.
- Bitcoin's dominance in the finance world is evident as it currently holds the 7th spot among the most valuable assets globally, with a market cap of $2.09 trillion, surpassing both Facebook and silver, and its price tag is above the $100k mark.
- The rise in Bitcoin's price is intriguing, as recent studies indicate that it's attracting a significant amount of liquidity from investors, who are choosing Bitcoin over other markets.
- Interestingly, Bitcoin's price is seemingly independent of U.S. bond yields, as CryptoQuant's reports show a decoupling between the two. This is a departure from historic trends, suggesting a shift in Bitcoin's underlying market dynamics and investor perception.
- Bitcoin ETFs have seen a surge in investments recently, with a $1.37 billion inflow in the last week alone, or about $274 million per day. This influx of capital has led to increased accumulation, positioning Bitcoin as a more permanent resident in investors' portfolios.
