How Did Traditional Assets Perform in 2023?
The Standard and Poor’s 500 (S&P 500), which tracks the performance of the largest US companies, started the year at around 3,820 points. It experienced some volatility but ended strong at 4,769 points, with a notable increase of about 25%. However, most of the gains came from tech-related companies like Nvidia.
The Nasdaq Composite, which mainly tracks tech stocks, had the highest surge among indexes. It soared from 10,386 to 15,011 points, representing a yearly increase of 44.5%. On the other hand, the Dow Jones Industrial Average, which follows 30 large US companies, increased by 13.74%.
What About Gold?
Gold is considered a safe haven asset that tends to perform well during turbulent times. It started the year at $1,813 per ounce and reached over $2,000 in April and May. After a reversal during the summer, it experienced a significant increase due to the Hamas-Israel war and ended the year at over $2,060 per ounce, marking a yearly increase of 13.73%.
And Then, There’s Bitcoin
Bitcoin had a rough year in 2022 but started 2023 at around $16,600. It quickly recovered and surpassed $20,000 by January 13. It faced some challenges reclaiming the $30,000 level but eventually succeeded in late October. Bitcoin reached nearly $45,000 in early December and is expected to finish the year between $42,000 and $43,000. Its year-to-date gains will be around 150% to 160%, outperforming traditional finance assets by a wide margin.
Hot Take: Bitcoin’s Strong Performance in 2023
Despite a challenging year for traditional assets, Bitcoin has proven to be a standout performer in 2023. With year-to-date gains of around 150% to 160%, it has surpassed the performance of stock market indexes and gold. Looking ahead to 2024, Bitcoin has promising factors like the upcoming halving and the potential approval of a spot BTC ETF in the US. However, it’s important to remember that past performance does not guarantee future results. Nevertheless, Bitcoin’s resilience and growth in 2023 indicate its potential as a valuable investment asset.
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