NEWSROOM

In 2023, marked by global inflation, debt crises, and rising living costs, cryptocurrencies have significantly impacted performance. Bitcoin, which has provided gains of at least 60% since the beginning of the year, has outperformed renowned stock exchanges such as the S&P 500 and Nasdaq.

TURKEY - As the end of the year approaches, evaluations regarding the return on investment for asset classes and their performances since the beginning of the year have started to emerge. The "year-to-date" value, determined by comparing the value of an investment instrument on January 1, 2023, with its current value and calculating the percentage change between them, also highlights the success of Bitcoin. Despite facing challenges in overcoming various resistance points throughout the year, Bitcoin, the world's largest cryptocurrency in terms of trading volume, has achieved a 60% gain since the beginning of the year.

Kafkas Sönmez, the Global Growth Director of Gate.io Turkey, shared his insights, stating, "Digital assets, traditionally associated with volatility and risk, are gaining the status of a safe haven in the eyes of investors with the annual gains they have achieved. With a 60% increase, Bitcoin is one of the year's best-performing assets."

Bitcoin Surpasses S&P 500 and Nasdaq

The return on investment for the S&P 500 Index, which lists the world's most influential companies and reliable organizations known as blue-chip, was measured at approximately 14% as of mid-October since the beginning of the year. It was observed that the Nasdaq Composite Index, a reliable index listing technology companies, achieved a total gain of nearly 27% since January 1, 2023. Bitcoin, with a 60% return, outperformed both stock indices.

Highlighting that 2023 was particularly marked by the hawkish policies of central banks in the United States and Europe, causing the most noticeable economic contraction, Kafkas Sönmez stated, "2023 was a challenging year for companies and households, with the global debt crisis, leading economies in Europe facing recession, and technology companies with high valuations making significant layoffs. Nevertheless, cryptocurrencies performed well, especially with the increasing institutional interest in digital assets.”

Ethereum's Annual Performance is 30%

In addition to Bitcoin, Ethereum, which ranks second in market value, has experienced a 30% price increase since the beginning of the year, as emphasized by Kafkas Sönmez. He noted, "Recently, Standard Chartered, a global bank, predicted that the price of Ethereum could increase by more than five times by the end of 2026. The research team estimated that with the increasing use of blockchain-based agreements known as smart contracts, as well as in games and the tokenization of traditional assets, the price of Ethereum could reach $8,000 within two years. Ethereum is preparing for another update named Dencun in 2024 following the Shanghai update. Meanwhile, the halving process of Bitcoin is expected to take place in 2024. These developments, combined with institutional interest, paint a hopeful picture for the future of crypto assets."