First-Quarter Performance Recap: CoinDesk Market Index Up 58%, BTC Gains Amid Banking Crisis

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Bitcoin posted its best quarterly performance in over two years, gaining 68%. The CoinDesk Market Index – which takes in more than 90% of the crypto market capitalization – was up 58%, led by significant gains for Ethereum and Cardano. by Tgroth8

, a provider of digital asset indices since 2014.

So far in 2023, crypto appears to be bucking trends driving stocks and bonds, including 2022 inflation fears and quantitative-tightening at the Federal Reserve. Digital assets have less in common now with growth-oriented equities, with a lowering of correlation between digital assets and equities. Within bitcoin specifically, we're also seeing a strengthening in the correlation with gold and the U.S. dollar .

This relationship between bitcoin and the yield curve strengthened during the Silicon Valley Bank event, supporting the digital gold narrative. The U.S. regional banking concerns and the rapid unwind of Credit Suisse have highlighted weaknesses in the traditional financial system when interest rates rise. While this may come to the delight or amusement of crypto maximalists and critics of the fractionalized banking system, it is a source for further deleveraging contagion risk.

 

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Tgroth8 This is great news!

Great to see the positive sentiment coming back into Web3! Innovative tools will continue to push the space to new heights!

Tgroth8 If you didn't outperform bitcoin with your investment, you don't know what you're doing. Defi is a gold mine. learn how to research and invest with different styles and get rid of your bias. Flexibility beats blind Stubbornness

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