Bitcoin outperforms almost all assets in Q3, an explosion in sight in Q4?

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In a difficult environment for most of the world’s financial markets, bitcoin outperformed most other markets in the third quarter of 2022. The price of BTC fell by 1% at the end of Q3 compared to the end of the quarter performance 2 compared to it. but exceeded the Dollar, which jumped 7% over the quarter.

The performance of bitcoin in the third quarter was therefore more important than crude oil, gold, the yen or even US government bonds. However, it should not be forgotten that, compared to the beginning of 2022, Bitcoin was down almost 60% at the end of quarter 3.

Bitcoin stocks are better in Q3, edges closer to gold

This means that contrary to what was seen in the first half of the year, Bitcoin outperformed stocks. Moreover, more and more experts point out that Bitcoin has less and less correlation with the equity markets, having started the year in which crypto and exchanges fell at the same time.

In a macroeconomic context that will remain degraded for at least several more months, Bitcoin could benefit from this lower correlation with equities for the last quarter of the year, by once again being seen as a hedge by investors, which could revive the debate over a possible period. digital gold role for Bitcoin.

Furthermore, as Bitcoin looses its correlation with equities, its behavior becomes closer to that of the yellow metal. In fact, bitcoin reached a maximum 40-day correlation with gold standing at 0.50, compared to near zero in mid-August.

Crypto-assets are a risky investment.

Central banks could push BTC back up in Q4

But that is not the only factor that could help Bitcoin rise for the rest of 2022. In fact, now that the central banks have made their intentions regarding a rate hike clear, not it’s only a matter of time before the debate over the next rate cut starts.

In fact, some monetary policy experts believe the Fed may have to cut rates in 2024 or even as late as 2023.

However, just as the rise caused rates to fall in the cryptocurrency market, the prospect of seeing them fall again could greatly support Bitcoin and other cryptocurrencies, which will be a source of crypto trading opportunities.

Will regulation fuel Bitcoin’s rise by the end of 2022?

Another factor that could put bitcoin in the camp of cryptocurrencies that will explode in Q4 has to do with regulation. In fact, in the United States as in Europe, governments and institutions are organizing to provide a legal framework adapted to the long-term growth of the cryptocurrency market.

While some bitcoin enthusiasts push for stronger regulation, advocating complete independence from governments, the reality is that regulation of bitcoin and the cryptocurrency market in general will facilitate the investment of institutional investors and the general public in cryptocurrency.

However, the main factor influencing Bitcoin’s very long trend is the adoption of Bitcoin, whether as an investment or as a payment method.

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