Bitcoin Still 2024’s Best Asset Despite Market Challenges

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In a year marked by macroeconomic uncertainty and regulatory shifts, Bitcoin has once again proven its resilience. According to the latest analysis from New York Digital Investment Group (NYDIG), Bitcoin remains the top-performing asset of 2024—despite facing significant headwinds in the third quarter. With a year-to-date gain of nearly 50%, BTC continues to outpace traditional financial instruments such as gold, silver, and major equity indices.

This performance underscores Bitcoin’s growing credibility not just as a speculative digital currency but as a strategic store of value in modern investment portfolios.

Bitcoin’s 2024 Surge: A Standout Performance

As of the latest data, Bitcoin has surged 49.2% year-to-date, maintaining a price above $60,000 even after a volatile Q3 that saw a temporary 30% pullback. This level of appreciation significantly outperforms other major asset classes:

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While Bitcoin only managed a 2.5% increase during Q3—lagging behind equities and precious metals—the broader trend remains bullish. The temporary dip was largely driven by external selling pressure rather than weakening fundamentals.

“At play during the quarter was the (near) resolution of numerous bankruptcies, including the long-running Mt Gox bankruptcy, which saw billions in BTC returned to creditors. The US government and German authorities (BKA) were also notable sellers during the quarter,” NYDIG reports.

These one-time supply shocks created short-term volatility but did not derail long-term momentum.

Why Q4 Could Reignite Bitcoin’s Rally

Despite Q3’s challenges, institutional analysts and market observers remain optimistic about Bitcoin’s trajectory for the remainder of 2024. Several macro and microeconomic catalysts point toward renewed upward pressure in the final quarter.

1. Political Tailwinds Across the U.S. Election Spectrum

Both major U.S. presidential candidates—Donald Trump and Kamala Harris—have adopted increasingly crypto-friendly positions. Trump has proposed creating a strategic Bitcoin reserve, while Harris has signaled support for innovation within regulated frameworks.

Regardless of the election outcome, clearer regulatory signals could boost investor confidence and accelerate institutional adoption.

2. Strengthening Correlation with Equities

Bitcoin’s 90-day correlation with U.S. equities rose to 0.46 in Q3, indicating deeper integration into mainstream financial markets. While some view this as reduced diversification benefit, others interpret it as evidence of maturation.

A higher correlation suggests that Bitcoin is increasingly being treated like a risk-on asset by portfolio managers—opening doors for broader inclusion in ETFs, hedge funds, and retirement accounts.

3. Expanding Global Liquidity Fuels Demand

One of the most powerful drivers behind Bitcoin’s long-term appreciation is monetary expansion. The global M2 money supply continues to climb, reaching new all-time highs in 2024.

Historically, Bitcoin performs exceptionally well during periods of loose monetary policy. With central banks maintaining accommodative stances or signaling potential rate cuts, liquidity is expected to flow into hard assets—including digital ones.

“If Bitcoin continues following the trajectory of global M2 money supply, it’s heading to $90,000 before the end of the year,” predicts investor Joe Consorti.

Institutional Accumulation Remains Strong

Even amid government-related sell-offs, private sector demand remains robust. Key indicators suggest strong underlying support:

This divergence between public-sector selling and private-sector buying highlights a shift in ownership dynamics: from distressed or seized holdings to long-term strategic investors.

👉 See how leading investors are allocating to Bitcoin in 2024.

Historical Trends Favor a Strong Q4

Seasonality plays a crucial role in cryptocurrency markets. Historical data shows that Bitcoin has closed Q4 in positive territory in 7 out of the past 11 years, with an average gain exceeding 81% during those bullish quarters.

While past performance doesn’t guarantee future results, the confluence of halving effects (which occurred in April 2024), increased institutional participation, and expanding liquidity creates a favorable backdrop.

Moreover, the post-halving phase typically sees reduced selling pressure from miners, allowing demand to outpace supply growth—a structural advantage unique to Bitcoin.

Frequently Asked Questions (FAQ)

Q: Why did Bitcoin drop in Q3 despite strong fundamentals?
A: The decline was primarily due to one-time sell-offs by governments and bankruptcy estates (e.g., Mt Gox, U.S. and German authorities). These events increased supply temporarily but didn’t reflect broader market sentiment.

Q: Is Bitcoin still a good hedge against inflation?
A: Yes. While short-term price movements can be volatile, Bitcoin’s fixed supply cap of 21 million coins makes it inherently deflationary. As global money supply expands, scarcity-driven assets like BTC tend to gain value over time.

Q: How does the U.S. election impact Bitcoin’s price?
A: A crypto-supportive administration could accelerate regulatory clarity and adoption. Both candidates have expressed pro-innovation views, reducing political risk—an important factor for institutional investors.

Q: Are Bitcoin ETFs boosting demand?
A: Absolutely. Spot Bitcoin ETFs have brought regulated exposure to millions of investors through traditional brokerage platforms. Sustained inflows signal growing trust and integration into mainstream finance.

Q: What could drive Bitcoin to $90,000 by year-end?
A: A combination of factors: renewed ETF inflows, post-halving supply constraints, expanding global liquidity, and potential rate cuts. If historical M2 trends hold, $90K is within reach.

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Final Outlook: Resilience Meets Opportunity

Bitcoin’s journey in 2024 exemplifies its transformation from internet currency to institutional-grade asset. Despite temporary setbacks caused by external sell-offs, its fundamental strengths—scarcity, decentralization, and growing adoption—remain intact.

With political support rising, liquidity expanding, and historical trends favoring strong Q4 performance, Bitcoin appears well-positioned for another leg upward. Whether you're an individual investor or part of a larger portfolio strategy, now is a critical time to understand Bitcoin’s evolving role in the global financial system.

The data speaks clearly: even in challenging markets, Bitcoin leads.