After doubling in price and up 120% year-to-date, Bitcoin (BTC) is the quiet asset winner. It benefited from multiple tailwinds in 2023.
The disastrous 2022 year for stocks and cryptocurrency set up a rebound play for BTC. Platforms that lent their assets to those who lost them filed for bankruptcy. Failed cryptocurrencies exited the market. This left crypto investors seeking BTC, the haven of the sector. Ethereum (ETH) is the second most popular crypto for investors. Both digital currencies offer an alternative to government debt and fiat currency.
More recently, Bitcoin traded at $37.885 on Nov. 15 before pulling back. The market is anticipating higher liquidity and increased demand ahead. When the mainstream stock market sells exchange-traded funds representing Bitcoin, it will only validate the market. Ahead of that positive development, BTC-USD prices are holding the $36,600 line.
Speculators who BTC are joining the party late. The risk increases for a “sell on the news” event. Bitcoin is pricing in an approval for a BTC ETF. Expect risks to rise as regulators delay approving such investment instruments.
Your Takeaway
Bitcoin continues to reward its early investors. The holding is the most diversified alternative to traditional assets like gold and currency.
