Bitcoin Underperforms Major Asset Classes in Q3 2024

Cryptonews Economy Clara Montgomery October 15, 2024

Bitcoin Underperforms Major Asset Classes in Q3 2024

During Q3 2024, Bitcoin’s price increased modestly by 0.8%, underperforming compared to gold’s 13.8% rise and the Japanese Yen’s 12% growth. Centralized exchanges experienced a decline in trading volumes, with Binance losing market share while Crypto.com saw significant growth, capturing a 14.4% market share. Despite Bitcoin’s slow growth, its market dominance rose to 53.6%.

According to CoinGecko’s recent report, Bitcoin (BTC) struggled to keep pace with major asset classes during the third quarter of 2024, ending the period with a modest price increase of only 0.8%. In contrast, gold demonstrated a significant rise of 13.8%, largely due to growing concerns regarding the economic outlook and geopolitical tensions affecting global markets. Investors have increasingly gravitated towards safe-haven assets amidst these uncertainties, resulting in Bitcoin’s underperformance. Furthermore, the Japanese Yen showed impressive strength during this time, rising by 12% following a surprise rate hike from the Bank of Japan, alongside simultaneous rate cuts by the U.S. Federal Reserve. While Bitcoin’s gains were minimal compared to these assets, it only managed to outperform crude oil and the U.S. Dollar Index; most fiat currencies appreciated against the dollar, reflecting evolving market dynamics and concerns surrounding demand and monetary policy changes. Despite Bitcoin’s lackluster performance, there has been a notable decline in trading volumes across the top ten centralized cryptocurrency exchanges, which collectively reported a trading volume of $3.05 trillion, marking a near 15% decrease quarter-on-quarter. Binance, although still leading in market share, witnessed a slip below 40% for the first time since January 2022, concluding September at 38% market dominance. In sharp contrast, Crypto.com achieved remarkable growth, rising from ninth to second place among centralized exchanges with a staggering 160.8% increase in trading volume, capturing a 14.4% market share. Meanwhile, both OKX and Gate.io faced significant challenges, each experiencing declines in trading volumes of over 30%. Additionally, U.S.-based exchange Coinbase saw its volumes drop by 23.8%, resulting in a fall from sixth to tenth place amongst top exchanges. Despite Bitcoin’s overall modest gains in Q3, CoinGecko analysts highlighted an increase in its market dominance to 53.6%, a rise of 2.7% compared to the previous quarter, noting that the last instance of such dominance was recorded in April 2021.

The article discusses the performance of Bitcoin in the third quarter of 2024 in relation to traditional asset classes like gold and fiat currencies. It highlights the increasing investor preference towards safe-haven assets amid economic uncertainties and geopolitical tensions that have arisen. Furthermore, it reflects on the performance of major centralized exchanges and provides insights into the shifts in trading volumes that were noted during the same period. CoinGecko provides a thorough analysis of market trends, emphasizing Bitcoin’s dominance despite the declining trading volumes in the crypto market.

In conclusion, the third quarter of 2024 revealed a challenging landscape for Bitcoin, which lagged behind significant asset classes like gold and the Japanese Yen, primarily due to heightened economic concerns. Despite its struggle for price improvement, Bitcoin managed to enhance its market dominance. Meanwhile, centralized exchanges faced setbacks in trading volumes, with distinct performance differences among platforms, signaling ongoing shifts in the cryptocurrency market.

Original Source: crypto.news