See More

Bitcoin: The Best Performing Asset Class in Q1 2023

3 mins
Updated by Ali Martinez
Join our Trading Community on Telegram

In Brief

  • Bitcoin set for its best trading quarter in nearly 2-years.
  • The top cryptocurrency vastly outpaces stocks performance.
  • BTC is well placed for more gains in Q2 2023.
  • promo

With a roughly 70% gain, Bitcoin is closing out Q1 2023 as the best performing asset class. This is the most profitable quarter since the three months ending March 2021, when it surged 103%.

That vastly outstrips the S&P 500’s 5.5% year-to-date advance. As well as the Nasdaq 100’s 19% uptick and the iShares 20+ Year Treasury Bond ETF’s 5.3% jump.

The Best Performing Assets in Q1 2023

Bitcoin is set to close out the first fiscal quarter with its best three-month performance in nearly two years. Marking an extraordinary turnaround of fortunes as the top coin looks set to close Q2 2023 with roughly a 70% price increase.

Other asset classes, such as stocks, have been left behind in Bitcoin’s tracks. BTC ranks as the best performing asset and has vastly outpaced the current 5.5% of the 2023 performance of the S&P 500. Bitcoin has also gained over three times the amount that the Nasdaq 100 has in Q2 2023, with its 19% price gain.

The final quarter of 2022 proved challenging for Bitcoin, losing around 15% in value. Factors such as the poor macroeconomic environment, Terra (LUNA) crisis, and crypto contagion fears impacted Bitcoin’s overall performance throughout 2022. 

This year Bitcoin has remained resilient. Despite the collapse of two major banks with links to cryptocurrencies, Silvergate and Signature Bank. The notion that the Federal Reserve (Fed) had to undergo “QE Light” and expand its balance sheet and add liquidity benefitted Bitcoin.

Recent indications that the Fed may be moving toward the end of its rate increase cycle have also been positive for BTC. Even less dramatic rate hikes in Q2 2023 may underpin the top crypto’s value.

Bitcoin’s reaction to Binance has shown that the future of the asset is not dependent on just one exchange, which is encouraging to the industry as a whole.

One metric to keep a close eye on in Q2 2023 is the price correlation between BTC and Gold. 

Best Performing Asset Bitcoin (BTC)
Ethereum (ETH) S&P500 (SPX) Gold
BTC/USD Vs. Gold/+S&P 500 Source: Santiment

The 30-day correlation between the two assets reached over 0.3 this month, its highest over 12 months. The ongoing bullish technical set-up for Gold certainly bodes well for further price gains in the yellow metal going forward.

Should Bitcoin retain this price correlation with Gold? More upside in Bitcoin seems likelier than not in the weeks ahead.

BTC Tokens Holders Gradually Climb Higher

Another very positive development for Bitcoin this quarter has been the sharp increase in Blockchain forensics platform Santiment’s Total Amount of Holders metric.

Since the start of Q1 2023, the Total Amount of Holders metric for BTC has increased by over 2.15 million, to 45.74 million, making an increase of 5%.

Bitcoin (BTC) Price 
Bitcoin (BTC) Total Amount Of Holders 
March 2023
Total Amount of Bitcoin Holders Source: Santiment

Should we continue to see a rising trend in the total amount of Bitcoin holders in Q2 2023, it could easily translate into more gains ahead.

Bitcoin Price Prediction: Blasting Towards $34,000

The ongoing Golden Cross on the daily time frame indicates a buy signal for BTC and the potential for further strong gains ahead.

A Golden Cross occurs when the 50-day moving average crosses over the 200-day moving average. The chart below depicts that Bitcoin is still in the early stages of a Golden-cross.

Best Performing Asset Bitcoin
BTC/USD Source: TradingView.com

The last time a Golden Cross took place for BTC was on September 14, 2021. The BTC/USD pair rallied from $46,000 to $69,000, gaining close to 50%.

Given that the current Golden Cross has yielded BTC around 29%, it is possible that if BTC was to match the gains of the previous Golden Cross and gain a further 21%. Then a rally close to $34,000 is possible.

Still, if the bears take charge and Bitcoin price slips below the week’s lows so far, at $26,700, expect a larger drop toward $24,500 before they choose to cut their losses.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

images-e1706008039676.jpeg
Advertorial
Advertorial is the universal author name for all the sponsored content provided by BeInCrypto partners. Therefore, these articles, created by third parties for promotional purposes, may not align with BeInCrypto views or opinion. Although we make efforts to verify the credibility of featured projects, these pieces are intended for advertising and should not be regarded as financial advice. Readers are encouraged to conduct independent research (DYOR) and exercise caution. Decisions based on...
READ FULL BIO
Sponsored
Sponsored