Despite starting the year with so much uncertainty, Bitcoin has overcome all odds and has become one of the best-performing asset classes of all time, according to a new report from Kaiko.
Kaiko says that BTC is on track to end the year as one of the best investment choices for 2023, and is about to mark a 160% YTD increase if all goes well
According to Kaiko's report, Bitcoin's price action in 2023 can be divided into three phases.
Kaiko says that the first phase came from January until March when BTC struggled to find its footing between $15,000 and $20,000.
The mid-year phase, however, is described by Kaiko as a "strange time", because BTC traded sideways for most of the time from March until October.
During this range, BTC traded between $25,000 and $30,000.
However, in October, things started to change when BTC staged a remarkable comeback and broke above $40,000.
Overall, Kaiko says that BTC has one of the best Sharpe ratios of the year, which makes it second only to Nvidia as shown above.
Kaiko also notes that Bitcoin's impressive performance in 2023, means that it outshines most traditional assets including stocks, bonds, commodities, and gold.
BTC is also shown to be decoupling slowly from stocks
This is a good thing because going forward, the approval of a spot BTC ETF, as well as the upcoming halving are expected to cause increased bullish volatility for the cryptocurrency.
BTC's decoupling from stocks allows it to move based on its own metrics and may mean that we are about to get a highly bullish 2024.
Overall, Kaiko says that BTC's future outlook remains bright, as it enters a new year with strong momentum and a possible retest of $50,000.
The pending ETF applications are also expected to significantly boost the price of BTC once approved.
The upcoming halving is also expected to improve the price of bitcoin, starting from May 2024, as seen after previous halvings in 2012, 2016, and 2020.
Overall, most of the major price predictions on BTC for the coming year, expect prices to move further upwards to anywhere between $80,000 and $125,000 at the end of the coming year.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.