In a bold rebound, Bitcoin has shrugged off its recent downturn. The resilient crypto asset topped the list of the best-performing assets of 2024, outpacing physical assets gold and silver in year-to-date returns.
Bitcoin gained 49.2% year-to-date, while silver and gold recorded 30.6% and 26.5%, respectively, according to data collected by Greg Cipolaro, Global Head of Research at New York Digital Investment Group (NYDIG).
Bitcoin’s Wild Ride in 2024
Bitcoin’s performance rebounded following a volatile year marked by significant price fluctuations. In the first quarter (Q1) of 2024, Bitcoin saw a considerable price increase from $42,000 to a little above $73,000, recording a new all-time high (ATH) price in March.
The new ATH record was primarily attributed to the approval of the Bitcoin spot exchange-traded fund (ETF) in the United States in January, coupled with sustained demand growth.
However, Bitcoin’s momentum was short-lived, as its price fell from $71,400 to $60,700 in Q2, indicating a bearish reversal. This downward trajectory was driven mainly by major economic events, including miner capitulation and the Federal Reserve’s delay in reducing interest rates.
The crypto market continued its downturn, with Bitcoin recording a 30% quarterly decline in Q3. The fall was attributed mainly to Mt. Gox repayment plans and government-led sell-offs. For instance, the German government sold the entirety of the 50,000 BTC, worth about $2 billion, confiscated from Movie2K in 2013.
Mid-June 2024 marked the start of Germany’s Bitcoin sales, which continued through Q3, utilizing multiple wallets, OTC trading desks, and major crypto exchanges like Coinbase, Kraken, and Bitstamp.
Bitcoin Performance Going Forward
As Q4 unfolds, its outlook remains bullish, with experts predicting a prolonged growth trajectory. Notably, Binance CEO Richard Teng predicted that BTC will sell for more than $80,000 before the end of 2024.
The 2024 U.S. presidential election could also significantly boost Bitcoin’s performance in recent months. The election’s outcome may clarify regulatory policies, thus influencing investor sentiment and potentially driving demand for the crypto asset.
The presidential candidates, Kamala Harris and Donald Trump have expressed support for the cryptocurrency sector, albeit to varying degrees. While Harris has recently shown public support for the industry, Trump has consistently endorsed crypto since launching his campaign, even accepting crypto-denominated donations from notable individuals.
