In 2024, Bitcoin has proven to be the best-performing investment, surpassing traditional assets like gold, silver, and stocks. Despite some market challenges, Bitcoin’s year-to-date growth is an impressive 49.2%.
A report from the New York Digital Investment Group (NYDIG) suggests that Bitcoin’s strong momentum could continue into the final quarter, driven by favorable conditions and growing investor interest.
Bitcoin Shows Strength in 2024
So far in 2024, Bitcoin has shown remarkable strength. Its 49.2% increase puts it ahead of assets like silver and gold, which gained 30.6% and 26.5% respectively. Even with a 30% dip in the third quarter, Bitcoin has stayed above $60,000, solidifying its place as the top asset this year.
NYDIG notes that Bitcoin faced some pressure in Q3 due to government sell-offs. The U.S. and Germany sold Bitcoin acquired from bankruptcy cases like the Mt. Gox incident. Despite this, Bitcoin’s overall performance remains strong, holding its lead over other major assets.
Key Factors Behind the Q4 Growth
As we move into the final quarter, several factors point to continued growth for Bitcoin. Both U.S. presidential candidates, Donald Trump and Kamala Harris, have expressed support for the crypto industry, which could lead to favorable regulations for Bitcoin and other digital assets.
Additionally, Bitcoin’s growing link to U.S. stocks could attract more investors looking to diversify their portfolios. This connection may increase Bitcoin’s appeal as a way to balance risks in traditional markets.
Another key factor is the increasing global money supply (M2). When more money is in circulation, investors often turn to assets like Bitcoin to protect against inflation. Crypto analyst Joe Consorti predicts that if Bitcoin continues to follow the rise in M2, it could reach $90,000 by the end of the year.
Strong Demand from Institutions
Institutional demand also remains a major driving force behind Bitcoin’s success. Bitcoin ETFs and companies like MicroStrategy continue to add to their Bitcoin holdings, showing confidence in its long-term value. This steady demand from large investors is expected to support Bitcoin’s growth in Q4.
Historical Trends Point to Q4 Strength
Historically, Bitcoin has ended Q4 on a positive note in seven of the last 11 years, with an average gain of over 81%. If this trend continues, Bitcoin could finish 2024 as the top-performing asset yet again.
As the year nears its end, Bitcoin’s impressive performance and favorable market conditions suggest it could maintain its status as the leading asset in the market. Investors will be closely watching to see if Bitcoin can continue its rise and possibly reach new highs.
Will Bitcoin’s dominance continue in 2025? Share your insights.
