Despite the recent collapse of major crypto-focused banks, Bitcoin has experienced a 50% surge in price this year, surpassing major stock indices and commodities. This year, Bitcoin began trading at just over $16,500 on January 1 and has seen a rally that started on Sunday, bringing it to around the $25,000 mark on Wednesday.
In 2022, Bitcoin crashed by 65%, following several project and hedge fund collapses, bankruptcies, liquidity issues, and the failure of FTX, one of the world’s largest cryptocurrency exchanges. Despite this setback, Bitcoin has made an impressive recovery this year. The unexpected price rise is surprising, given the recent closure of two of the largest lenders to the crypto industry, Silvergate Capital and Signature Bank, and the failure of Silicon Valley Bank, which is viewed as the backbone of the technology startup industry.
In comparison to major stock indexes, Bitcoin has outperformed the tech-heavy Nasdaq, which is up 12% in the year to date, and the S&P 500, which has risen by 2.5%. Even gold, which is traditionally seen as a haven in times of market turmoil, has only increased by just over 3% this year.
Bitcoin has also outperformed most commodities and stock indexes, with individual stock Meta being the only one up around 60% in the year to date. Among the major digital currencies, Ether has rallied 42% this year, while Solana has surged more than 100%.
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