The banking giant Goldman Sachs has named Bitcoin (BTC) as the best-performing asset in the world this year despite the significant losses the cryptocurrency industry endured in 2022, including numerous bankruptcies and fraud investigations.
According to a screenshot posted by Documenting Bitcoin on January 23 and taken from the year-to-date asset return report by Goldman Sachs, a previous vociferous opponent of Bitcoin, the first cryptocurrency has outperformed the S&P 500, gold, real estate, and the Nasdaq 100 this year.
The MSCI emerging markets index, MSCI developed markets, energy, information technology (IT), financials, 10-year U.S. Treasury, health care, utilities, materials, crude oil, consumer staples, and many other benchmarks have all underperformed BTC.
BTC started the year pretty strong
According to the graph created by Goldman Sachs’ Global Investment Research division and shared by Documenting Bitcoin Twitter account, the flagship decentralized finance asset actually holds the top rank on this list with almost 27 percent in total returns and a risk-adjusted ratio of 3.1, while the following assets are far behind.
Recall that Goldman Sachs began including Bitcoin in its returns report in early 2021 after years of criticizing the first digital asset and expressing doubt about cryptocurrencies. This led to the introduction of cryptocurrency services for its high net-worth clients in the second quarter of 2022, citing increased client demand.
Current BTC price analysis
In other markets, Bitcoin was trading at press time for $22,546, a decrease of 1.65% over the previous 24 hours but an increase of 6.576% over the previous week and 33.876% over the previous month.
With a market value of $433.88 billion, it outperforms all the top traditional financial institutions worldwide, including JPMorgan Chase (NYSE: JPM), Bank of America (NYSE: BAC), and Wells Fargo (NYSE: WFC).
What is Goldman Sachs?
Goldman Sachs is a multinational investment bank and financial services company headquartered in New York City. It is one of the largest and most well-known investment banks in the world and offers a wide range of services including investment banking, securities trading, and wealth management. The firm has a global presence and is listed on the New York Stock Exchange.
What exactly does Goldman Sachs do?
A prominent global investment banking, securities, and investment management company, The Goldman Sachs Group, Inc. offers a comprehensive range of financial services to a sizable and diversified clientele that consists of businesses, financial institutions, governments, and private individuals.
Why is BTC so popular right now?
Bitcoin (BTC) is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. The main reason why BTC became so popular is that it is the first successful implementation of blockchain technology, which allows for the secure and transparent transfer of digital assets without the need for a trusted third party.
Additionally, BTC has a finite supply of 21 million coins, which makes it scarce and gives it the characteristics of a store of value. Furthermore, It also offers an alternative to traditional fiat currencies and allows for more autonomy and privacy in transactions. The combination of these factors has led to increased interest and adoption of BTC, making it one of the most popular cryptocurrencies of 2023.
Is BTC a good investment in 2023?
The most valuable cryptocurrency by market capitalization, bitcoin, is a volatile and dangerous investment. It should only be taken into consideration if you have a high level of risk tolerance, good financial standing, and the ability to absorb any potential losses BTC is a good investment in 2023..
