Bitcoin, the world’s largest crypto asset by market capitalization, has demonstrated remarkable resilience and impressive growth, outperforming traditional assets with its value surging by more than 110% since January.
The positive sentiment surrounding Bitcoin, driven by anticipation of the Securities and Exchange Commission’s (SEC) approval of spot Bitcoin exchange-traded fund (ETF) filings and the upcoming Bitcoin Halving event next year, has propelled the value of this crypto asset to new highs.
In addition to its increased dominance, Bitcoin, when compared to gold—the most popular traditional investment and a preferred choice for diversifying risks—has appreciated by 93%, as revealed by data from Bitfinex’s Alpha report this week.
The king of crypto, introduced to the world in 2009 by its pseudonymous creator Satoshi Nakamoto, has “outperformed” during uptrends. Analysts attribute this to its pioneering role in the industry, its status as “digital gold,” and broader institutional adoption.
Furthermore, Bitcoin has outperformed traditional assets, which are still in a “correction phase,” while the world’s first-ever crypto asset has already surpassed old records and reached significant highs.
The surge in Bitcoin’s value has thawed the prolonged winter in the crypto market. Notably, long-term holders (LTHs) or wallet addresses holding between 1,000 and 10,000 BTC are predominantly inactive based on the Spent Output Value Bands (SOVB) metric trending lower, suggesting a possible bullish sentiment.
“The declining Coin Days Destroyed metric indicates that long-term holders are holding firm, underscoring their belief in Bitcoin’s long-term value. Furthermore, wallets holding large amounts of BTC are showing inactivity, suggesting a bullish sentiment or hedging against future uncertainties,” as noted in the Bitfinex Alpha report.
Bitfinex analysts state, “The stronger performance of BTC during these upswing phases can be attributed to various factors, such as its established reputation as the pioneer cryptocurrency, its perceived digital gold status, the ETF approval frenzy, and its broader institutional adoption,” in a note sent to International Business Times.
The Federal Reserve acknowledged the ‘strong’ pace of economic growth in the third quarter, an upgrade from the “solid pace” referenced in its September meeting. This shift in language aligns with data showing a remarkable 4.9 percent annual growth rate in US gross domestic product during the third quarter.
As of 2:45 p.m. ET on Monday, BTC was trading in the red zone at $34,974.02, with a 24-hour trading volume up by 18.65% at $13,706,714,992, indicating a 0.24% decrease in the last 24 hours and a 1.9% gain over the past seven days.
Data from CoinMarketCap reveals that Bitcoin’s total circulating supply stands at 19,535,000 BTC, with its value down by 0.26% at a $19,535,000 market cap.
