Bitcoin Will Outperform All Other Assets In 2023 Due To 3 Reasons: Report

Bitcoin Will Outperform All Other Assets In 2023 Due To 3 Reasons: Report

Bitcoin

In a new report, Capriole Investments has posited that Bitcoin will outperform all other assets in the coming year due to three key reasons. One of those reasons, perhaps unsurprisingly to many, will be the currently all-defining U.S. Federal Reserve (FED).

According to the company, the market is currently experiencing the most aggressive monetary policy since the 1980s. The annual rate of change in the M2 money supply is now negative for the first time ever, as shown by analyst Dylan LeClair yesterday.

Bitcoin Is Harder Than Gold

Capriole Investments compares today’s inflation spike to those in 1970 and 1975. “Both periods sparked huge gold bull-runs. From 1971-1975, gold rallied 450% and between 1977-1980 it shot up 800%,” as the firm notes.

There are “compelling parallels” between today’s and the 1970s in terms of inflation trends. With Bitcoin being the “harder money” compared to gold, plus other advantages, Capriole Investments expects BTC to outperform its older competitor.

Related Reading: Bitcoin Price Grinds Lower, More Losses Seem Imminent

Accordingly, a second key reason for Bitcoin’s massive strength in 2023 will be its upcoming halving in early 2024. Currently, BTC’s market capitalization is only 2.5% of gold’s market capitalization, which means upside potential of 3,739%.

Bitcoin Will Outperform All Other Assets In 2023 Due To 3 Reasons: Report

“In just over a year, Bitcoin will become the hardest asset in the world, with a programmed inflation rate less than half that of gold. […] Every Bitcoin halving has kick started a cyclical bull-market in digital assets. Yet every halving people expect that to be priced in,” Capriole Investment says.

BTC Poised For A Bull Run In 2023

Looking at the fundamentals, Edwards notes that Bitcoin is trading within $100 of the Bitcoin bottom signals he gave in November. The all-important chart according to Edwards is that of Bitcoin’s cost of production, “Bitcoin continues to trade at the bottom of the cost of electricity. Incredibly rare, low value.”

In conclusion, the investment firm predicts the 2020s will be the decade of hard money, similar to the 1970s. “For stock market investors, this could be called “a lost decade.”

“If you agree, the only question left is which hard money will prevail,” Capriole says, going on to say that Bitcoin is poised to outperform gold because of three major advantages: It’s harder, it’s digital, and it’s 1/40 the size of gold, making it predestined for greater appreciation.

At press time, the BTC price was still struggling to gain momentum, trading at $16,584.

Bitcoin Will Outperform All Other Assets In 2023 Due To 3 Reasons: Report

Featured image from Kanchanara / Unsplash, Charts from Capriole Investments and TradingView.com

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