Greg Cipolaro, the head of global research at New York Digital Investment Group (NYDIG), delivered his firm verdict: Bitcoin is still the top-performing asset class of 2024.
Here are the key factors Cipolaro highlighted in his report:
- Bitcoin rose by 2.5% during a typically weak third quarter.
- It remains the best-performing asset this year, up by a whopping 49.2%.
- Spot ETFs kept adding more Bitcoin to their holdings throughout the quarter.
- Public companies continued to stack Bitcoin on their balance sheets during the quarter.
- Regardless of the outcome, the U.S. presidential election could be a positive factor for the industry.
A 2.5% Rise in a Sleepy Third Quarter
Despite the typical third-quarter lull when investors take a breather, Bitcoin still posted a 2.5% gain. This signals Bitcoin’s resilience, even during times of seasonal volatility. Historically, the third quarter tends to see a drop in market interest due to summer vacations and slowing economic activity. But Bitcoin broke tradition in September, posting gains in what’s usually its weakest month.
Spot ETFs Boost Bitcoin
Another key highlight of the third quarter was the continued growth in Bitcoin holdings by ETFs. U.S. spot ETFs alone gathered $4.3 billion in new investments, signaling growing adoption among big institutional players. BlackRock emerged as the big winner here, with its iShares Bitcoin Trust collecting 4.6 times more than its closest competitor, Fidelity.
Cipolaro emphasizes that these increasing ETF balances reflect large institutions' confidence in Bitcoin as both a diversification tool and a long-term investment strategy.
Public Companies Keep Adding Bitcoin to Their Balances
In another testament to Bitcoin’s staying power, public companies continued to accumulate more Bitcoin. MicroStrategy kept up its Bitcoin shopping, now holding 252,220 BTC worth $9.91 billion. Meanwhile, Marathon Digital picked up an additional $249 million worth of Bitcoin in the third quarter.
Others, like Semler Scientific, Metaplanet, Cathedra, and OneMedNet, have either adopted Bitcoin treasury strategies or added it to their portfolios. These companies set an example for others, making Bitcoin look like the go-to reserve asset for forward-thinking corporations.
U.S. Presidential Elections
Cipolaro also touched on the potential impact of the U.S. presidential election on Bitcoin and the broader crypto industry. While Trump seems more eager to embrace the industry (and potentially win over some of the 52 million Americans who own crypto), even Harris, with her cooler stance, would likely bring a friendlier tone to the industry compared to the Biden administration. Either way, the outcome of the election is a positive catalyst for the crypto sector.
Bitcoin Retains Its Crown
These key factors will continue to influence the Bitcoin market soon, keeping it firmly in the spotlight as the leading asset class in 2024.
According to NYDIG, Bitcoin has surged by 49.2% since the beginning of 2024, securing its title as the best-performing asset of the year. This impressive growth underscores Bitcoin’s long-term appeal as a reliable hedge against risk.
Kataryna Habeliia
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