Banking giant Goldman Sachs ranked Bitcoin (BTC) as the top-performing asset year-to-date, ahead of gold, the US Treasury, the S&P 500 and others. per twitter user.
According to Goldman Sachs, Bitcoin has a risk-adjusted return (Sharpe ratio) of 3.1, outperforming cryptocurrency pairs and major financial institutions in traditional markets. The Sharpe ratio is used to measure market volatility-adjusted performance. The higher the ratio, the better the investment, currency or stock in terms of risk-adjusted returns.
Bitcoin Leads Broad Market Recovery
In a shorter timeframe, Bitcoin continues its quest to regain lost territory. Slowly but steadily, Bitcoin is trying to break through the $23,800 resistance level.
Despite the recent crisis caused by the collapse of FTX and the free fall of the global economy, the market is also eyeing the resurgence of cryptocurrency exchange market makers, with consequences for investors and institutions.
According to the annual report, in contrast to the Goldman Sachs report, report According to CoinGecko, Bitcoin is the worst performing asset among major currencies, with a massive 64% drop. CoinGecko also notes that since January 2022, spot market trading volume has fallen by 67%.
The new year for Bitcoin and the market started positively, with $200 billion inflating the volume and volatility sheet, according to data from CoinMarketCap.
Bitcoin’s strong year-to-date rally has changed market sentiment. The analyst looks bullish in the short term and expects the cryptocurrency to rise to $30,000. Longer term, however, Bitcoin could be in “considerable danger” in the second quarter of 2023 as liquidity risks rise, said economist Lynn Alden.
With Bitcoin price breaking below the resistance zone, the cryptocurrency is looking for a trendline break above the $24,500 level that represents the next obstacle.
The rising 20-day moving average at $20,700 and the Relative Strength Index (RSI) near the 80 overbought zone suggest that BTC’s bullish trendline can continue and conquer new territory.
Conversely, while the bears are ready to halt the Bitcoin price move upwards and change the momentum and direction of the market, the bulls seem unwilling to surrender. The lack of certainty in the market and the upcoming Federal Open Market Committee (FOMC) meeting has fueled speculation.
Bitcoin is up nearly 8% in the last seven days as of this writing. It’s been flat for the past 24 hours and is trading at $22,889. The currency’s current market capitalization of $440 billion is above all market pairs.