For Gold, 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, per Twitter user.
According to Goldman Sachs, Bitcoin has outperformed its cryptocurrency pairs and those major traditional market financials 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 investment, currency or stock in terms of risk-adjusted returns.
Bitcoin is leading the way in broad market recovery
On shorter time frames, Bitcoin continues its quest to regain lost ground. Slowly but steadily, Bitcoin is trying to break above the USD 23,800 resistance level. Bitcoin seems to have a healthy pullback below the resistance line in search of bullish momentum.
Despite the recent crisis of not only the cryptocurrency market with the collapse of FTX and the global economy in free fall, affecting investors and institutions, the market has also noticed the comeback of market makers on cryptocurrency exchanges.
Contrary to the Goldman Sachs report, according to an annual report report according to CoinGecko, Bitcoin is the worst-performing asset among the major currencies, with a significant drop of 64%. CoinGecko also noted that spot market trading volume has decreased by 67% since January 2022.
The new year for Bitcoin and the market started on a positive note, with $200 billion on the volume and volatility sheets, according to data from CoinMarketCap.
Bitcoin’s solid rally since the start of the year has changed market sentiment. Analysts appear optimistic in the near term and expect the cryptocurrency to rise to as much as $30,000. In the long run, however, economist Lyn Alden said 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 looks for a trendline break to position itself above the $24,500 level, representing the next obstacle.
The rising 20-day moving average of $20,700 and the Relative Strength Index (RSI) in the overbought zone near 80 suggest that BTC’s bullish trendline may continue and conquer new regions.
Conversely, bears are poised to slow Bitcoin’s price action to the upside and reverse the market’s momentum and direction, but bulls seem unwilling to surrender. Speculation is ramping up with no certainties in the market and upcoming Federal Open Market Committee (FOMC) meetings.
At the time of writing, Bitcoin has gained almost 8% in the past seven days. It has been trading at $22,889 with sideways movement in the last 24 hours. The currency’s current capitalization stands at $440 billion, better than any of its market pairs.