After the impact of the FTX affair and a very timid start to 2023, very few crypto users expected to learn such invigorating news. However, the figures published by Glassnode give reason to believe in the future of cryptocurrencies and especially those of bitcoin (BTC) and ether (ETH). According to the report, bitcoin and ether have outpaced gold in terms of performance this year. We are talking about it.
A rise above gold for bitcoin and ether in 2023
In a recent publication, we noted the fact that bitcoin seemed to be positioning itself as a more profitable asset than traditional assets. Analytics company Glassnode has just published a report that confirms our analysis.
Glassnode report reveals that the price of ETH saw an increase of 39% against gold. On the BTC side, the news is even better. The price of bitcoin has increased by 93% compared to that of gold since the start of the year. Likewise, when quoted in gold, the cryptocurrency is trading at its highest peak since September 2021, a little before the great correction.
BTC and ETH experienced shallower corrections in 2023
According to Glassnode, the corrections experienced by bitcoin and ether this year are relatively shallow compared to previous crypto cycles. The biggest decline experienced by bitcoin in 2023 was 20.1% while that of ether was 44%. However, during previous bull markets, corrections were greater than 60% for both cryptocurrencies. This is a very positive element.
Glassnode also noted the close correlation between returns generated by ETH and BTC on a 30-day rolling basis. These cryptocurrencies appeared to have suffered declines of equal magnitude, although bitcoin’s performance during uptrends was strongest.
Cryptocurrencies will overshadow traditional financial markets
While the market cap of altcoins excluding stablecoins has only increased by 37% since the start of the year, that of bitcoin has increased by 110%. Despite the recent recovery of altcoins against the US dollar, bitcoin has retained its position as the undisputed leader of cryptocurrencies in terms of capital turnover.
The data published by Glassnode allows us to draw some conclusions. The number of investors supporting bitcoin and ether is constantly increasing. Cryptocurrencies no longer suffer the extreme volatility and strong extreme selling pressure that we used to experience. Bitcoin in particular has won over investors. Amid inflation and economic crisis, bitcoin appears to have a better hedge than gold and traditional assets in general.
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