Bitcoin price targets $25,000 as Goldman Sachs ranks BTC as best performing asset of 2022

[ad_1]

Bitcoin price is hovering on the cusp of critical support, trading at $22,640. According to Goldman Sachs, Bitcoin became the asset with the highest risk-adjusted return of 3.1. The ranking placed Bitcoin above gold, 10-year US Treasury bonds, and the S&P 500 index, among others.

Bitcoin price had managed to recoup all of its losses from November 2022, when the king coin slipped to trade at $15,000. Since then, BTC has attempted to rise further and breach a seven-month hurdle, effectively pushing the price above $25,000.

Goldman Sachs says Bitcoin was the best performing asset in 2022

Goldman Sachs called Bitcoin the best performing asset of 2022, calculated based on the asset’s total return and risk-adjusted returns. In the case of Bitcoin, the risk-adjusted returns, or sharpe ratio, emerged as the highest at 3.1 compared to not just other cryptocurrencies, but other asset classes in the market.

This makes Bitcoin the best performing asset compared to traditional financial market assets. Indeed, the volatility is much lower in TradFi than in the crypto market. However, despite the swings in the crypto market throughout 2022, Bitcoin has outperformed the S&P 500, Nasdaq 100, gold, and even the 10-year US Treasury bond.

The Goldman Sachs report

As far as volatility goes, over the year the price of Bitcoin saw significant ups and downs, with the value of the king’s coin hitting the $48,000 mark. However, the continued failure and subsequent bankruptcies of Three Arrows Capital (3AC) and Celsius caused the first wave of contagion, which was reignited in the last two months of 2022.

In November, already struggling to recover, BTC was hit by the crash induced by the collapse of FTX, which wiped out any recovery, taking the asset to $16,100. Since then, the king coin has managed to not only recoup its decline from the FTX crash, but also trade at $22,619.

The price of Bitcoin is expected to rise

Bitcoin price may be able to continue its upward trend as the cryptocurrency has maintained its tight sideways movement. This creates bullish momentum, which would drive the price up towards $25,000.

This would be possible if the king coin remains above the immediate support level at $22,557. By doing so, a breakout of $23,216 and the marking of the critical resistance level at $23,956 is possible. It is necessary to flip the same into a support floor for BTC to climb to $25,000.

BTC/USD 12-hour chart

However, if immediate support is lost, Bitcoin price would drop directly to $21,452. A daily candlestick close below the latter would invalidate the bullish thesis, driving the price back below the November 2022 highs towards $20,000 or even lower.

[ad_2]