The spot Bitcoin ETF approval has transformed people’s perspective of digital assets. Bitcoin continues to draw exposure as Wall Street giants join the race.
Reports suggest Bitcoin is denominated in long-end US Treasuries. Apart from claiming a new all-time high, Bitcoin is denominated in fixed-rate and nominal US Treasury debt, with a maturity period of over 10 years.
Besides, Joe Consorti, a renowned crypto analyst and advisor, claims Bitcoin has performed better than traditional stock indices, commodities, fiat currencies and all the GICS stock markets.
The report further shows Bitcoin’s year-till-date (YTD) absolute and risk-adjusted returns have outperformed traditional financial assets.
Bitcoin yields better returns than banking money in 96% of portfolio managers. This shows why investor’s interest in the crypto sector is at its peak.
Bitcoin’s Performance Amid Bear Markets Reflects a Critical Shift in Global Asset Dynamics
However, while Joe Consorti praises Bitcoin for its remarkable performance, a tweet by Jamie Coutts, a crypto research analyst at Bloomberg Intelligence, draws investors’ attention in a different direction.
As per Coutts, BTC did not perform well compared to other assets in the extreme bear markets of 2018 and 2022 when liquidity became tight.
Bitcoin declined 80% during the 2018 bear market, underperforming in risk-adjusted return compared to other financial instruments.
Notably, BTC performed poorly during the 2022 bear cycle. So, Coutts believes allocators should focus on how BTC fares relative to other assets during horrible economic years instead of how it performed in the good times.
The analyst believes such an approach provides a clear picture of the global critical shift in financial market dynamics as it becomes difficult and less attractive.
Bitcoin Aims To Hit A New All-time High
Meanwhile, Bitcoin has climbed a high horse this month amid a rapidly deteriorating US fiscal outlook.
The flagship crypto asset has continued its bullish run, aiming to set a new record high amid record-breaking spot BTC ETF net inflows that exceeded $7 billion.
This comes as institutional interest in the spot BTC ETFs skyrockets, with retail traders scrambling to get a cut.
Bitcoin has rallied hard since hitting the $46,000 mark upon the SEC’s approval of eleven spot ETFs on January 10, 2024.
Following a few price consolidations, BTC went from around $40,000 in early January to approximately $52,000 last week. It achieved a two-year record high of $68,000 on March 4.
