The cryptocurrency market continues to face the financial crisis that has led to the collapse of several major banking institutions, and Bitcoin has performed better than most companies listed on the S&P 500 in the United States during the third month of 2023.
Bitcoin’s price has risen by 37.06% since March 10th and by 72% since the beginning of the year, while the leading digital currency has outperformed 97.6% of S&P 500 companies in this year’s returns, including companies like FedEx, Apple, and Amazon, according to data shared by the cryptocurrency education platform “Cryptomaniax” on March 22.
Furthermore, the leading digital currency has outperformed commodities in 2023, especially gold, “the best-performing commodity of the old guard,” by more than 10 times, indicating that it may be in a “super cycle,” according to Bloomberg’s commodities specialist, Mike McGlone.
It is also noteworthy that over 70% of current Bitcoin owners are making profits, with most of them having held onto these assets for a year or more. Investors who started investing fixed dollars in Bitcoin when it reached its peak in November 2021 are currently earning returns of 10% on their regular investments.
Undoubtedly, Bitcoin’s stunning performance in recent times is leading many to consider this type of digital currency as a new and effective financial alternative. However, this type of currency still faces many risks and price fluctuations, meaning it is still necessary to understand the safety and risks associated with this type of financial asset. In addition, Bitcoin still faces some technical issues, such as processing capacity constraints facing the Bitcoin network and high processing costs.
If you are interested in investing in Bitcoin or any other digital currency, you must fully understand the unique nature of this type of asset and be aware of the risks and rewards associated with it. It is also important to stay up-to-date with the latest developments and changes in the cryptocurrency market to make informed investment decisions.