Ahead of gold, the US Treasury, the S&P 500 and others, banking giant Goldman Sachs ranks Bitcoin (BTC) among the top 1 best-performing assets year-to-date, according to a Twitter user.
According to Goldman Sachs, Bitcoin has outperformed its cryptocurrency pairs and the traditional market’s major financial institutions with a risk-adjusted return (Sharpe Ratio) of 3.1. The Sharpe ratio is used to measure market volatility-adjusted performance; The higher the ratio, the better the asset, currency or stock in terms of risk-adjusted return.
Bitcoin is the #1 investment year to date in terms of total returns and adjusted returns. Source: Goldman Sachs via Documenting Bitcoin
Bitcoin takes the lead in the broader market recovery
On smaller timeframes, Bitcoin continues its quest to regain lost territory. Slowly but steadily Bitcoin is trying to break the $23,800 resistance level. Bitcoin appears to be making a healthy pullback below the resistance line in search of bullish momentum.
Despite the recent crisis not only of the cryptocurrency market with the collapse of FTX and the global economy in free fall, with consequences for investors and institutions, the market has also noted the comeback of market makers on cryptocurrency exchanges.
In contrast to the report by Goldman Sachs, according to an annual report report According to CoinGecko, Bitcoin is the worst-performing asset among major currencies, with a significant drop of 64%. CoinGecko also noted that trading volume on the spot market has fallen by 67% since January 2022.
The new year for Bitcoin and the market started on a positive note, with $200 billion filling volume and volatility sheets, according to CoinMarketCap data.
Bitcoin’s solid year-to-date rally has shifted market sentiment. Analysts seem optimistic in the short-term, expecting the cryptocurrency to rally as high as $30,000. In the longer term, however, economist Lyn Alden said that Bitcoin could be in “significant danger” in the second quarter of 2023 as liquidity risks mount.
As Bitcoin’s price consolidates below the resistance zone, the cryptocurrency is looking for a trendline break to position itself above $24,500, which is its next obstacle.
The rising 20-day moving average at $20,700 and the Relative Strength Index (RSI) in the overbought territory near 80 suggest that BTC’s bullish trendline may continue and conquer new regions.
BTC is trending up on the daily chart. Source: BTCUSDT trade view
Conversely, bears are poised to put the brakes on bitcoin price action to the upside and reverse the market’s momentum and direction, but bulls seem unwilling to give up. Speculation is increasing with no certainties in the market and upcoming Federal Open Market Committee (FOMC) meetings.
As of this writing, bitcoin is up nearly 8% over the past seven days. It has traded sideways at $22,889 for the last 24 hours. The currency’s current capitalization stands at $440 billion, outperforming all of its market pairs.
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