Bitcoin has seen a positive recovery journey in early 2023 so far, as it has outperformed five major stock indexes in Q1 of 2023, according to Finbold data.
Furthermore, bitcoin is proving to be an extremely positive investment compared to the decline in the traditional financial sector.
The data shows that bitcoin has achieved a return on investment that far outstrips other major stock indexes. Furthermore, Q1 this year also saw bitcoin returns at 69.4%, while the five major stock indexes only had an average return of 5.5%.
Bitcoin’s recent rally continues to strengthen its position as a viable investment option amid a turbulent banking sector.
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Bitcoin once again proves its worth
2022 is sure to be a down year for the entire crypto market. Specifically, when macroeconomic factors take their toll on the financial sector, cryptocurrencies suffer as a whole. However, the cryptocurrency market has struggled to recover.
Data compiled by Finbold has shown that “Bitcoin outperformed the 5 major stock indices in Q1 2023. Bitcoin achieved a return on investment of 170.32%, more than the indices. securities, a clear indication of bitcoin’s ability to be investable.”
Among the analyzed indices are: NASDAQ Composite (IXIC) has the highest return of 17.39%. In contrast, the S&P 500 (SPX) is at 6.36%, the US Small Cap 2000 (RUT) is at 2.51% and the FTSE 100 (FTSE) follows at 0.99%. Finally, the Dow Jones Industrial Average (DJI) is the fifth-ranked index, with a return of just 0.56%.
While there are many reasons for bitcoin’s dominance, the main one of them is likely to be the budding banking crisis. As a result, troubles in the banking sector have led investors to look to decentralized finance as an alternative. Thus, leading to the positive performance of bitcoin compared to traditional stock options.
See also: 2.5 million Swiss investors can now buy Bitcoin and Ethereum
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