The Winner of 2023? Bitcoin

- by Markus Thielen

Bitcoin has been the superior asset in 2023.

In 2023, Bitcoin outperformed the Nasdaq by +100%, with a +150% increase compared to the Nasdaq's +53%. Investors are now pondering whether to allocate more capital to Bitcoin in 2024.

Listed Bitcoin firms have outperformed Bitcoin.

A basket of listed Bitcoin mining companies, along with other listed crypto firms like Coinbase, has returned +266%, outperforming Bitcoin by more than +110%. Interestingly, Bitcoin mining companies are highly cyclical, and this year's price return reflects this.

Bitcoin Transaction Fees have Skyrocketed.

Bitcoin ordinals have been a key theme this year and caused Bitcoin transaction fees to increase sharply. Even when Bitcoin prices decline or consolidate, Bitcoin mining companies could continue to generate high revenues.

Among tokens, Solana has outperformed.

Surprisingly, Bitcoin has outperformed most Layer 1 and most Layer 2 tokens and, on a risk-adjusted basis, has performed better than its nearest competitor Ethereum, which is up +83% year-to-date.

Written by Markus Thielen, Head of Research & Strategy at Matrixport. Author of Crypto Titans.

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Industry views and information shared do not represent Matrixport's position and do not constitute any investment advice.