Back to Blog
Bitcoin is currently one of my best performing investments of 2023. The coin is up almost 63% YTD at time of writing. Compare that to the S&P 500 which is up 11.5% and Gold which is up 7.6% so far YTD at time of writing. While I do wish I had bought more Bitcoin than I did at the start of the year, I have to say that I am very pleased with how the asset is performing.
Bitcoin usually moves with the market. When the market is rallying, Bitcoin is usually up as well. When the market is in a downturn like last year, Bitcoin is usually down as well. While many look at Bitcoin as a contrarian to the market, that is just not the case, at least yet. Bitcoin is also more volatile than the market which means that when the market goes up, Bitcoin goes up at a higher percent, but when the market goes down, Bitcoin to goes down at a larger percent. While some view Bitcoin's correlation with the market as a bad thing, the market goes up more often than it doesn't historically.
No one knows for sure if this market rally will continue or not, but I believe that it will. With this in mind, I must also believe that Bitcoin will have a good year as well. Bitcoin is currently at around $27,000 a coin which is still far away from its previous all-time high of around $69,000 a coin. I don't necessarily believe that Bitcoin will reach its all-time high this year, and I hope that it does not as I am not done buying the asset and would much rather buy at lower prices than higher ones. It goes back to the saying "be greedy when others are fearful". Those who were greedy at the end of last year must be having a great year this year.
I previously wrote my thesis on why Bitcoin is valuable here - Why Bitcoin is Valuable - Finance by CWT - FINANCE BY CWT. Because I don't believe that these reasons have changed, I still believe in Bitcoin. With this in mind, I want to own as much Bitcoin as I can. There are only 21 million of them that will ever exist, and I want to own as much as possible.
While no one knows how the rest of the year will go for Bitcoin, one must admit that so far, Bitcoin is doing really well.
Follow Finance by CWT on any of the platforms below so that you never miss an article!