Goldman Sachs Lists Bitcoin As Top-Performing Asset

Mar. 20, 2023
Goldman Sachs Lists Bitcoin As Top-Performing Asset

Goldman Sachs’ recent data reveals that in terms of year-to-date absolute returns and risk-adjusted performance, Bitcoin has surpassed conventional investment assets and sectors such as technology and gold.

The best-performing digital currency had a year-to-date absolute return of 51%, outperforming several other sectors, including information technology (16%), communication services (15%), consumer discretionary (11%), Russell 1000 Growth (10%), gold (4%), and the S& P 500 (4%).

Due to worsening fundamentals and broader market concerns, energy and crude oil prices have plummeted by 11% and 14%, respectively. Oil prices have dropped to their lowest point since December 20, 2021. The activity of OPEC+ and the United States will determine the market’s direction.

The Sharpe Ratio, which assesses risk-adjusted returns, shows that the bellwether coin has outperformed other sectors, such as information technology (1.5), Nasdaq (1.4), and healthcare (-1.1), with a strong score of 1.9.

The growing likelihood of the US Federal Reserve abandoning its hawkish monetary policy is the reason behind the recent Bitcoin price surge. Experts in the field have widely attributed this.

Bitcoin Resilience Despite Challenges

Following the closure of Silicon Valley Bank by regulators on March 10, the cryptocurrency has experienced a surge of 35%. Market analysts warn of correction, yet Bitcoin’s strong rebound compared to Wall Street stocks attracts investor interest.

Global monetary policies and the downfall of Terra, FTX, and Celsis 3AC eroded investor trust in cryptocurrencies during 2022. This resulted in a significant correction in the value of Bitcoin.

Bitcoin value increased by 34% last week, its best performance since January 2021, even as the banking crisis continued. The cryptocurrency’s significant gain suggests a change in how investors perceive it.

Related Reading | FDIC Requests Signature Bank Buyers To Cease Crypto Operations

The banking crisis has fueled a crypto rally, embraced by desperate investors after a harsh bear market for cryptocurrencies. Several investors have even said that Bitcoin’s perspective has shifted.

Inflation rates and Federal Reserve decisions impact Bitcoin value. Other factors may play a role. The primary influence lies with interest rates and inflation.

Rida Fatima

News writer
An ardent wordsmith with a rich five-year background in delving into the realms of finance and cryptocurrencies. Alongside curating captivating blogs, Unique's talents extend to crafting imaginative and engaging content.