Bitcoin gained more than “every asset class” over the course of 2024, according to a new report, undoing correlation with equities, gold, and the U.S. dollar in the fourth quarter thanks to a late-year price surge.
Research released by New York Digital Investment Group shows that in Q4 2024, Bitcoin broke away from major assets following the election of Donald Trump in November—but it could still move back in line with them.
Bitcoin has often moved in line with U.S. equities—particularly tech stocks—as it is considered by many to be a “risk-on” asset. It has also typically done well in a low-interest rate environment.
Bitcoin ETFs registered $16.5B of net inflows, but the lion’s share of flows is going to BlackRock and Fidelity while some ETFs registered outflows during the quarter. pic.twitter.com/Z1Kz1Z7GkW
— NYDIG (@NYDIG) January 13, 2025
“With Bitcoin increasingly owned by traditional market investors, it’s natural to expect correlations to change,” the NYDIG report read, referring to the new Bitcoin ETFs trading on stock exchanges.
“Still, the promise of a non-sovereign issued store of value is an appealing investment in the current geopolitical climate, one that should not be driven by the same macroeconomic levers of say the U.S. stock market,” it added.
Bitcoin surged to new highs after President-elect Trump’s November 5 victory. The incoming leader campaigned on a promise to slash regulation and help the digital asset industry, and NYDIG credits Trump’s win as the “main driver” for Bitcoin’s surge.
By December 17, the biggest digital coin had hit a new all-time of $108,135, CoinGecko data shows. It has since retreated and is now trading for $99,600. Earlier this week, it briefly dipped below the $90,000 mark before a resurgence back above $100,000.
NYDIG added in its research that Bitcoin outperformed all asset classes by a wide margin in 2024, rising by more than 47% in the final quarter, and by nearly 120% from January to the end of the year.
The biggest cryptocurrency has in the past moved both with the stock market and gold. Is it slowly becoming an asset class of its own?
Edited by Andrew Hayward
