Bitcoin continues to surge, reaching its highest level since May 2022 and achieving a yearly gain of over 130%. This makes it one of the best performing assets of the year.
The popular cryptocurrency, BTCUSD, has risen approximately 2.5% in the past 24 hours, reaching around $38,676 on Friday afternoon. The excitement surrounding the potential approval of bitcoin exchange-traded funds contributes to its current momentum. However, it is important to note that Bitcoin still remains 44% below its all-time high from 2021.
In November, risk assets experienced positive performance as concerns regarding long-term Treasury yields and inflation began to ease. Grayscale Research analysts have highlighted this trend in a recent note.
Despite outperforming many major assets this year, Bitcoin did not fare as well as long-term Treasurys and the S&P 500 in November when considering volatility-adjusted returns. It gained only 9% during that month.
Market analyst Sam Callahan from Swan Bitcoin predicts that Bitcoin will trade between $36,000 and $40,000 by the end of the year. However, he emphasizes that this projection depends on the absence of any negative macroeconomic developments. Additionally, significant positive developments such as the approval of a Spot Bitcoin ETF or widespread adoption by major corporations, sovereign-wealth funds, or nation-states could influence the outcome.
Although Bitcoin has performed admirably so far this year, December historically proves to be a particularly volatile month for the cryptocurrency since its inception in 2009. According to Dow Jones Market Data, it has risen in seven out of thirteen Decembers.
Data from Dow Jones Market Data also reveals that in years when Bitcoin has gained more than 100% through November, it has seen an average gain of 20% in December. This occurred in four out of the six instances.
Given Bitcoin’s relatively short history, it is important to note that it was especially volatile during its early years.