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Bitcoin was largely impacted by Mt. Gox and Genesis creditor distributions that ran into about $13.5 billion.
Key Notes
Bitcoin gained 49.2% in 2024, despite the Q3 downturn driven by large sell-offs.ETFs and institutional investments boost Bitcoin, setting bullish expectations for Q4.Bitcoin BTC $63 603 24h volatility: 2.6% Market cap: $1.26 T Vol. 24h: $17.30 B has maintained its leadership over all other asset classes after emerging as the best performer so far in 2024. A recent study by the research division of the New York Digital Investment Group (NYDIG) confirms the asset as having gained 49.2% in value year-to-date.
This shows that its lead over other assets may have narrowed in the third quarter (Q3), thanks to a significant downturn in the market that extended from Q2 losses.
Bitcoin Gains amid Market Challenges
In Q3, Bitcoin did manage to gain just 2.5%. However, it could not really rebound as much because of the constraint from large sell-offs.
Bitcoin was largely impacted by Mt. Gox and Genesis creditor distributions that ran into about $13.5 billion. That is not to mention the large BTC sales by the US and German governments.
Despite the situation shrinking what used to be a bigger lead for BTC, it still outpaced other assets, further confirming its position as the ‘crypto king.’
According to NYDIG’s research head Greg Cipolaro, the challenges could not stop Bitcoin from bucking the trend in September. In the month, which is historically a bearish month, the asset added an impressive 10%.
Cipolaro shared that Bitcoin may have the rising demand for US spot exchange-traded funds (ETFs) to thank for this continued relevance. He noted that the ETFs gathered $4.3 billion in total flows for the quarter, and that may have contributed immensely to the BTC gains recorded.
Additionally, institutional ownership from firms like MicroStrategy and Marathon Digital has also continued to boost Bitcoin’s performance.
Expectations for Q4 2024
If the research by NYDIG is anything to go by, then it is safe to say that other assets, such as precious metals and certain equity products, have made notable gains against Bitcoin. This floats the idea that the current investment landscape is a very competitive one.
However, Cipolaro insists that Bitcoin still offers significant diversification benefits to multi-asset portfolios. That is, due to its relatively low correlation with other asset classes. For instance, Bitcoin’s rolling 90-day correlation with US stocks continued rising in Q3, ending the quarter at 0.46.
About the expectations for Bitcoin’s performance in Q4, Cipolaro is quite positive. His view hinges on the fact that Q4 is historically bullish for Bitcoin, so this year should not be an exception. Moreover, several potential catalysts and indicators are already lined up.
One major potential catalyst that will influence market performance is the upcoming US election slated to take place on November 5.
Per Cipolaro, a win for Donald Trump, who has embraced Bitcoin with both arms, would likely bring about much larger gains. He wrote:
“While both candidates will be improvements over the Biden administration regarding their attitude towards crypto. Trump, if he wins, will deliver bigger gains for the asset class given his full-throated endorsement of the industry.”
Bitcoin’s price has shown signs of recovery in recent days. As of publication, Coinspeaker data shows it has climbed 2.72% over the past 24 hours to $63,666.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
