Bitcoin is still performing well after Q3 said by NYDIG.
Greg Cipolaro, the head of research at NYDIG, shared that Bitcoin is holding steady in the same range it was in the last two quarters. He believes Bitcoin had the potential to become a major player in the fourth quarter.
Even though the third quarter of 2024 is usually considered a weak time for Bitcoin, the cryptocurrency has still been a top-performing asset this year. According to Cipolaro, Bitcoin rose by 2.5% compared to the previous quarter, bouncing back after a dip in Q2, but its performance was impacted by large sell-offs during that period.
So far in 2024, Bitcoin has gained 49.2%, remaining the best-performing asset class, though its lead has narrowed. However, trading has been relatively stable over the past six months due to some challenges. These include the creditor payouts for Mt. Gox and Genesis, amounting to $13.5 billion, as well as large Bitcoin sales from the U.S. and German governments.
Other assets like precious metals and certain stock sectors have started catching up with Bitcoin, Cipolaro noted, with many showing strong performance this year.
Despite a tough period last month, Bitcoin still managed to climb 10%. This was largely due to ongoing interest in U.S. spot exchange-traded funds (ETFs), which saw $4.3 billion in investments during the quarter. Additionally, companies like MicroStrategy and Marathon Digital increased their Bitcoin holdings.
Cipolaro also pointed out that Bitcoin’s 90-day correlation with U.S. stocks has been growing, ending the third quarter at 0.46. However, he emphasized that Bitcoin still offers diversification benefits for investors, as its correlation with stocks remains relatively low.
By the end of Q3, the crypto market found some support, partly due to backing from former U.S. President Donald Trump. Other factors included the Federal Reserve’s global monetary easing, and China’s central bank pumping more money into the economy through stimulus measures.
Looking ahead, Cipolaro mentioned that the U.S. election on November 5 could have a major impact on markets in the fourth quarter, especially if Trump wins. Both candidates have more favorable views on crypto than the current administration, but Trump’s strong support for the industry could lead to bigger gains. Cipolaro also noted that the fourth quarter is usually a strong time for Bitcoin, and there are a few factors that could help it grow even more.
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