Bitcoin was the best-performing financial asset in 2024.

Bitcoin continues to maintain its strong performance despite significant sell-offs and market fluctuations. According to a recent report published by NYDIG, although the cryptocurrency only gained 2.5% in the third quarter, it outperformed other asset classes with a 49.2% increase since the beginning of the year. This situation demonstrates Bitcoin's resilience against challenging market conditions.

Bitcoin Performance Continues to Surprise Investors

The report prepared by NYDIG's research head, Greg Cipolaro, presents important data regarding Bitcoin (BTC) performance. The report thoroughly examines the cryptocurrency's performance in 2024.

Despite the challenges faced in the third quarter, Bitcoin showed remarkable performance throughout the year. With a 49.2% increase since the beginning of the year, Bitcoin outperformed other financial assets.

Cipolaro emphasized that Bitcoin's current position is similar to its position in the previous two cycles. This similarity is significant for understanding Bitcoin's cyclical behavior.

The report reveals that Bitcoin recorded only a 2.5% increase in the third quarter. Factors such as the Mt. Gox and Genesis creditor distributions are behind this low performance. These payments led to significant Bitcoin sales totaling over $13.5 billion.

Additionally, large Bitcoin sales conducted by the U.S. and German governments also affected the market. However, despite all these challenges, Bitcoin managed to exhibit strong performance throughout the year.

Cipolaro noted that the correlation between Bitcoin and U.S. stocks increased in the third quarter. Nevertheless, he emphasized that the current correlation level is still low and that Bitcoin offers significant diversification benefits for multi-asset portfolios.

The report indicates that demand from U.S. ETFs positively impacted Bitcoin's performance. These funds collected a total of $4.3 billion in inflows during the third quarter.

Moreover, the increasing Bitcoin purchases by technology companies like MicroStrategy and cryptocurrency mining companies like Marathon Digital contributed to the cryptocurrency's performance.

Cipolaro predicts that the upcoming U.S. elections will play a significant role in the fourth quarter's market performance. The researcher expects greater gains for the cryptocurrency asset class if Trump wins.