Aaryamann Shrivastava
FXStreet
- Bitcoin price is hovering at the cusp of critical support, trading at $22,640.
- According to Goldman Sachs, Bitcoin emerged as the asset with the highest risk-adjusted return of 3.1.
- The ranking placed Bitcoin above the likes of Gold, the US 10-year Treasury bond and the S&P 500 index, among others.
Bitcoin price had managed to recover all of its losses from November 2022, when the king coin slipped to trade at $15,000. Since then, BTC has attempted to rise further and clear a seven-month-long hurdle, in effect pushing the price above $25,000.
Goldman Sachs says Bitcoin was the best-performing asset in 2022
Goldman Sachslabeled Bitcoin as the best-performing asset of 2022, calculated on the basis of total return and risk-adjusted returns on the asset. In the case of Bitcoin, the risk-adjusted returns, or sharpe ratio, emerged as the highest at 3.1 in comparison to not just other cryptocurrencies, but other asset classes in the market.
This makes Bitcoin the best-performing asset in comparison with the traditional financial markets assets as well. This is because the volatility is far lower in TradFi than in the crypto market. However, despite the fluctuations in the crypto market throughout 2022, Bitcoin ranked better than the likes of the S&P 500 index, Nasdaq 100, Gold and even the 10-year US Treasury bond.
Goldman Sachs’ report
As for the volatility, over the year, Bitcoin price has witnessed significant ups and downs, with the value of the king coin touching the $48,000 mark. However, the consistent failure and subsequent bankruptcies of Three Arrows Capital (3AC) and Celsius brought on the first contagion wave, which was reignited over the last two months of 2022.
In November, already struggling to recover, BTC got hit by the crash induced by the FTX collapse, which wiped out any recovery, bringing the asset to $16,100. Since then, the king coin has managed to recoup not only its FTX-crash decline, but further to trade at $22,619.
Bitcoin price set to go up
Bitcoin price might be able to continue its uptrend as the cryptocurrency has been keeping its movement constricted to sideways. This allows for the build-up of a bullish momentum, which would shoot the price up toward $25,000.
This would be possible if the king coin kept above the immediate support level at $22,557. In doing so, a breach of $23,216 and tagging the critical resistance level at $23,956 is possible. Flipping the same into a support floor is necessary for BTC to climb to $25,000.
BTC/USD 12-hour chart
However, if the immediate support is lost, Bitcoin price would slip straight to $21,452. A daily candlestick close below the latter would invalidate the bullish thesis, bringing the price back below the November 2022 highs towards $20,000 or even lower.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethereum has lost its “ultra” sound money status, faces key rectangle resistance hurdle
Ethereum is up 0.5% on Thursday following a recent analysis showing that the top altcoin lost its "ultra" sound money narrative. Meanwhile, ETH ETFs recorded net inflows for the first time after nine days of consecutive outflows.
Solana bears dominate market as SunPump has potentially led to less demand for SOL
Solana is down 2.5% on Thursday following bearish signals across its funding rate and total fees captured. SOL's weak performance could also be linked to the declining traction seen in its meme coin generation platform Pump.fun.
AI tokens see narrow gains as Wall Street banks raise price targets on NVDA
AI tokens NEAR, ICP, RENDER and TAO briefly traded in the green on Thursday following Wall Street banks' positivity toward Nvidia's earnings report. While a correction followed, these tokens could rally if NVDA meets expectations.
XRP back above $0.57 even as Ripple traders take $8 million in profits
Ripple (XRP) traders have consistently taken profits on their holdings in the last two weeks, per Santiment data. Once again, traders have grabbed $8.36 million in profit so far on Thursday. Typically, profit-taking negatively influences the asset as it increases the selling pressure.
Bitcoin: Will BTC continue its ongoing decline?
Bitcoin (BTC) trades above $59,000 on Friday, but it has lost 7.5% this week so far after being rejected around the daily resistance of $65,000. The decline is supported by lower demand from the US spot Bitcoin ETFs, which registered a net outflow of $103.8 million, falling Bitcoin's Coinbase Premium Index, and a spike in Network Realized Profit/Loss. However, some investors seem to be taking the chance to buy BTC amid this price dip, as shown by the Exchange Netflow data.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.