- Bitcoin gained 2.5% in Q3 2024, despite market pressures from creditor distributions.
- BTC’s year-to-date growth of 49.2% outperformed other major asset classes in 2024.
- The crypto’s correlation with U.S. equities rose to 0.46, offering diversification benefits.
Bitcoin has remained the top-performing asset in 2024, despite facing challenges during the third quarter. According to a report from the New York Digital Investment Group (NYDIG), the cryptocurrency managed a modest 2.5% gain during this period. This allowed it to recover from its decline in the second quarter. Although Bitcoin faced selling pressure throughout the quarter, it still posted a year-to-date increase of 49.2%. However, its performance lead over other assets has become smaller.
Bitcoin Faces Market Pressure
Several factors contributed to Bitcoin’s market pressure during the third quarter. Notably, creditor distributions from the Mt. Gox exchange and Genesis added nearly $13.5 billion of selling pressure. Additionally, both the U.S. and German governments sold significant amounts of Bitcoin, which impacted market conditions. Despite these challenges, Bitcoin managed to hold its position as one of the top-performing assets.
Other asset classes, such as precious metals and certain equities, also saw strong gains. This narrowed the performance gap between these assets and Bitcoin. Even so, Bitcoin’s ability to maintain growth through these headwinds showcases its resilience in a competitive market.
Bitcoin Transactions from Mt.Gox Spark Hope in CreditorsResilience Despite a Weak Quarter
Historically, September is a weak month for Bitcoin, yet the cryptocurrency posted a 10% gain during this period. The growing demand for U.S. spot exchange-traded funds (ETFs) played a crucial role in this performance. Inflows into Bitcoin ETFs reached $4.3 billion during the quarter. Corporate interest also contributed, with companies like MicroStrategy and Marathon Digital increasing their involvement.
Bitcoin’s correlation with U.S. equities rose slightly, ending the quarter at 0.46. However, the correlation remained low enough to show Bitcoin’s diversification benefits for portfolios. This made it a valuable asset in multi-asset strategies, despite the broader market trends.
Broader Market Gains Impact Bitcoin
Other assets performed well in 2024, reducing Bitcoin’s lead as the best-performing asset. Precious metals and various equities posted strong returns, making the market more competitive. However, Bitcoin’s overall resilience remains evident. Increased institutional interest and favorable political developments toward the end of the quarter gave the broader cryptocurrency market a boost.
