Bitcoin's growth in Q1 2023 led BTC to outperform other investment products, despite the gloomy economic outlook.
Bitcoin earned the title of 'best-performing asset class' with a gain of around 70 per cent, making it the best quarter for the digital currency since 2021, according to Bloomberg data.
During the first quarter of 2021, Bitcoin had gained about 103%. The asset's latest quarterly returns placed the digital currency ahead of big names such as the S&P 500 (5.5 per cent), the Nasdaq 100 (19 per cent) and the iShares Core U.S. Aggregate Bond ETF (2.2 per cent).
In Commodities, Bitcoin also outperformed gold, with the precious metal posting gains of 9.5 per cent in the first three months of 2023, while silver yields stood at 0.3 per cent.
Investors rush to buy Bitcoin
Investors appear to be rushing to buy Bitcoin and Ethereum (ETH), as evidenced by open interest that jumped nearly 430% year-on-year as of 31 March. Bitcoin's ability to lead the market in terms of gains has also revived optimism, with nearly 1,000 new coins entering the space in 2023 alone.
Market experts, however, believe Bitcoin's performance should come as no surprise, as the asset has begun to build the foundation for a possible rally in late 2022.
Bitcoin's gains have also matched the renewed possibility of further interest rate hikes as the Federal Reserve moves to contain skyrocketing inflation. The cryptocurrency has also capitalised on the chaos in the banking sector, as investors see the asset as an alternative to centralised monetary systems following the collapse of Silvergate Capital, Signature Bank and Silicon Valley Bank.
Bitcoin's resilience can be attributed to its legitimate fundamental improvements and its unique role as a bearer asset at a time of scepticism about bank deposits and increased central bank bailouts.
The top five US banks lost a cumulative market capitalisation of $108.92 billion in 2023 alone, while Bitcoin added approximately $219.86 billion.
Bitcoin now controls a market cap of about $540 billion after an inflow of over $200 billion in 2023.
Throughout the last months of 2022 and even more so this first quarter, hundreds of Toonie users have requested a Bitcoin wallet efficient, simple, fast and secure.
To be able to use it as a safer option to classic exchanges, but above all to be able to spend it as if it was a regular currency.
We accepted the request. From the 10th of April our Users will finally be able to open a wallet in BITCOIN !!!