Before Gold, US Treasuries, S&P 500, and others, the banking giant Goldman Sachs ranks Bitcoin (BTC) in the 1 best asset in recent years, every Twitter user.
According to Goldman Sachs, Bitcoin has outperformed cryptocurrency pairs and traditional market leading financial institutions with a risk-adjusted return (Sharpe ratio) of 3.1. The Sharpe ratio is used to measure performance adjusted for market volatility; The higher the ratio, the better the investment, currency, or stock in terms of risk-adjusted returns.
Bitcoin Leads Broad Market Recovery
On a smaller scale, Bitcoin continues to regain lost territory. Slowly but steadily, Bitcoin is trying to break above the $23,800 resistance level. Bitcoin appears to have a healthy pullback below the resistance line in search of bullish momentum.
Although the recent crisis is not only the cryptocurrency market with the collapse of FTX and the world economy in free fall, bringing consequences for investors and institutions, the market has also noted the return of market makers in cryptocurrency exchanges.
Contrary to the Goldman Sachs report, according to the annual report by CoinGecko, Bitcoin is the worst-performing asset among major currencies, with a significant decline of 64%. CoinGecko also notes that since January 2022, the trading volume on the spot market has decreased by 67%.
The new year for Bitcoin and the market started positively, with $200 billion bulking the volume and volatility sheets, according to CoinMarketCap data.
Bitcoin’s solid rally year to date has shifted market sentiment. Analysts seem to be bullish in the short term, expecting the cryptocurrency to increase to $30,000. However, in the long term, economist Lyn Alden said that Bitcoin could be in “considerable danger” in the second quarter of 2023 as liquidity risks increase.
As the price of Bitcoin consolidates below the resistance zone, the cryptocurrency is looking to break the trendline to position itself above the level of $24,500, representing the next obstacle.
The 20-day moving average is up at $20,700 and the Relative Strength Index (RSI) in the overbought zone near 80 indicates that BTC’s bullish trend line may continue and conquer new territory.
On the contrary, the bears are ready to prevent the price action of Bitcoin to go up and turn the momentum and direction of the market, but the bulls seem to refuse to give up. Speculation is rising with no certainty in the markets and the Federal Open Market Committee (FOMC) meeting.
As of this writing, Bitcoin has gained nearly 8% in the last seven days. It has traded at $22,889 with sideways movement in the last 24 hours. The current capitalization of the currency is about $440 billion, surpassing all market pairs.