In the first quarter of 2023, bitcoin (BTC) significantly outperforms the five major stock market indices in market performance. The king of cryptos once again confirms its raison d’être as an alternative to traditional currencies.
Performance boosted by the banking crisis
BTC has seen a major rebound and trend change since the start of the year. This performance is linked to many factors, including the current banking crisis. The collapse of Silvergate Bank, Silicon Valley Bank and Signature Bank has caused investors to turn to bitcoin (BTC). This crisis has shown the fundamental weaknesses of the American banking system as well as of the dollar. The purchasing power of the king of cryptos has increased since 2010 while that of the dollar has declined over the years.
The ROI of bitcoin (BTC) in the first quarter is 170.32% higher than the average of five major stock market indices. Its return was 69.4%, while that of the indices was 5.5%. This is indicated by the data from finbold. These are the Nasdaq Composite, S&P 500, US Small Cap, FTSE 100 and the Dow Jones Industrial Average. The Nasdaq being the one that recorded the highest return, which is 17.39%.
A positive future outlook for bitcoin (BTC)
The crypto is benefiting from growing prospects of a slowing of interest rate hikes by the FED. Investors are also hopeful that bitcoin (BTC) could maintain its gains despite the legal challenges Binance is currently facing. Indeed, the crypto-stock market is currently facing the Commodity Futures Trading Commission (CFTC).
Either way, BTC is currently anticipating a monthly close in the green. Moreover, the month of April is historically favorable to the flagship crypto. Additionally, bitcoin (BTC) is not solely dependent on a crypto exchange, which is a positive for the entire industry. It is highly likely that the leading crypto by market value will break above the $30,000 resistance level. However, uncertainty persists due to rising inflation.
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