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Bitcoin (BTC) Price Outperforms Top Fiat Currencies in Q3

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Amidst the crypto winter and consistent fall in prices, Bitcoin price managed to remain afloat, even overshadowing top fiat currencies. 

The only fiat currency that performed above the BTC is the US Dollar index (DXY).  The US Dollar index remains strong and gained about 7% over the second quarter. 

Similarly, the Bitcoin token continues to outperform fiat currencies and major equities. BTC maintained this outperformance run in the third quarter of 2022. 

Bitcoin (BTC) Price Overshadows Fiat

You would recall that Bitcoin rose to an all-time high price value in November 2021. In that period, BTC stood at $69,000, with a total market capitalization of over $1.2 trillion. 

However, since the bear market started, major crypto assets such as Bitcoin have fallen drastically. Between November and the third quarter of 2022, BTC fell by over 68% and is now worth $19,341.

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The market capitalization has also plummeted to $371billion. Within the same period, Ethereum has fallen to $1,349. BNB stands at $273, with Solana at about $28

Analysis shows that Bitcoin outperformed major assets such as crude oil, gold, and the Japanese Yen. Amidst the crypto winter, you would imagine how Bitcoin managed to outperform top fiat currencies in Q3 

Reasons For Bitcoin Dominance

The major reason why Bitcoin outperformed other assets is the Fed rate hike. Mike McGlone of Bloomberg said the Fed rate hike boosted Bitcoin to “outperform most assets.”

You would recall that every nation is battling inflation, with America having 8.2% in October 2022. This necessitated the incessant increase in the interest rate by the Federal reserves. 

The Fed rate stands at about 3.25 and is expected to move to 4% by the end of 2022. This steady increase directly affects the market and causes an increase in the price value of BTC. 

Enthusiasts and holders have attributed the outperformance of Bitcoin to it being a hedge against inflation. However, the year-to-date (YTD) puts Bitcoin as the poorest. 

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The report shows that Bitcoin has lost about 58% in its year-to-date performance but is the best performer in Q3. 

ETH, SOL Follow BTC

BTC has continued to lead the crypto market while the likes of ETH and SOL have come behind. In Quarter three of 2022, the price value remained steady, outshining major fiat currencies. 

Assets such as gold, crude oil, and the Japanese Yen could not outshine BTC in the market, despite the crash in the crypto market.  Experts, however, opined that Bitcoin would likely emerge as the best-performing asset in H2 2022.

It is also expected that the bear days are, however, and by 2023, the crypto market will have a bull run. Several experts are optimistic that BTC will reach $100,000 by 2023. 

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Valentine is interested in the intersection of creativity and technology. He's a web3 content creator.

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