- Bitcoin price is at the top of critical support, trading at $22,640.
- Bitcoin emerged as the asset with the highest risk-adjusted return of 3.1, according to Goldman Sachs.
- The ranking put Bitcoin ahead of gold, 10-year US Treasury bonds, the S&P 500 index, and others.
Bitcoin price has managed to make up all the losses from November 2022 when King Coin traded at $15,000. Since then, BTC has risen further, trying to clear the seven-month hurdle and actually pushing the price above $25,000.
Goldman Sachs says Bitcoin will be the best performing asset in 2022
Goldman Sachs has labeled Bitcoin as the best performing asset for 2022, calculated based on the asset’s total return and risk-adjusted return.For Bitcoin, risk-adjusted return , or Sharpe ratio, was the highest at 3.1 compared to other asset classes in the market, not just other cryptocurrencies.
This makes Bitcoin one of the best performers compared to traditional financial market assets. This is because TradFi has much lower volatility than the cryptocurrency market. But despite the volatility of the cryptocurrency market throughout 2022, Bitcoin still ranked above the S&P 500 index, the Nasdaq 100, Gold and even his 10-year US Treasury.
Goldman Sachs report
In terms of volatility, Bitcoin’s price has seen significant ups and downs over the past year, with King Coin reaching a value of $48,000. However, the consistent failures and subsequent bankruptcies of Three Arrows Capital (3AC) and Celsius brought the first wave of contagion, which reignited in his final two months of 2022.
In November, BTC, which was already struggling to recover, suffered a crash caused by the collapse of FTX, wiping out the recovery and leaving assets at $16,100. Since then, KingCoin has not only recovered from the FTX Crash drop, but has also traded at an additional $22,619.
Bitcoin price set to rise
Bitcoin price may continue its uptrend as cryptocurrency activity is leveling off. This could add bullish momentum and push the price towards $25,000.
This is possible if King Coin breaks out of the recent support level of $22,557. In doing so, it is possible to break out of $23,216 and tag the critical resistance level of $23,956.
BTC/USD 12-hour chart
However, if the immediate support is lost, Bitcoin price will plummet to $21,452. If the candlestick breaks below the latter, the bullish thesis will be invalidated and the price will return from his November 2022 high to $20,000 or below.
