Bitcoin’s Depressing Third Quarter Ranks Second Last in Returns
Over the past three months, Bitcoin has registered a drop of 11% and only beat long-term treasuries.
Bitcoin (BTC) struggled a lot in the third quarter, which resulted in an 11.1% loss for investors. Besides, it hardly beat long-term treasuries that registered -11.9% during the same period.
NYDIG Global Research Executive Optimistic in Bitcoin Recovery Despite Dismal Performance
Greg Cipolaro, NYDIG’s Global Head of Research, wrote concerning the terrible performance of crypto and how it goes against crypto space events. He highlighted promising court cases, the deliberation on United States debt, and macroeconomic changes.
The current ‘impasse’ concerning government funding amid the continued interventions to secure approval for a spot Bitcoin ETF.’ According to Cipolaro, the developments failed to boost BTC past the $31000 mark, which is the upper bound of its present range.
However, BTC was not the sole asset to experience losses last quarter. Nearly all asset classes experienced significant drops, including the United States stock market, real estate, gold, and other valued metals,
Remarkably, only four assets experienced gains in the last quarter. In this case, commodities gained 15.5%, followed by cash, which registered 1.3%.
Inflation Level Turns Sedate, Leaving Bitcoin Prices Stagnant
Peter St. Onge, an economist at Heritage Foundation, claimed that BTC’s poor performance may be attributed to a brief pause in increasing prices. Specifically, he said that inflation being more sedate has been the significant driver near-term. Additionally, he said that gold is experiencing these impacts.
Nevertheless, the trend may be temporary. According to St. Onge, a price action in financial assets might be evoked by Israel’s recent events. He claimed it is necessary to see what occurs in the Middle East. Additionally, he explained that hard assets are more likely to shore up, while risk assets are more likely to go down. Concerning Bitcoin, both situations are possible.
Bitcoin Prices Expected to Respond to Recession Uncertainties
St. Onge’s perspectives contradict Greg Cipolaro’s views. Greg views ‘recession uncertainties,’ increasing interest rates, ‘insistently’ high inflation, and occasional weight on returns, meaning that BTC is highly likely to show depressing performances in every year’s third quarter.
Possibly in a way to offer hope to investors, nevertheless, he said that the ‘dull performance’ has a bright side: in history, the fourth quarter is one of the best quarters of the asset.
Despite the three-monthly performance, BTC investors must wait and notice whether the major cryptocurrency regains its early 2023 course, which has significantly affected the asset. So far, BTC’s gain is 63% on the year, just one of the four to acquire double-digit improvements. Further, it outperforms the U.S. Large Cap Growths Fund, its closest rival, by more than two-fold.
