US-based bank Goldman Sachs considers Bitcoin as the asset performing the best so far in 2023.
Bitcoin is also ranked at the top by the investment bank in a list of assets that have the highest return adjusted to risk, placing above real estate, gold, the Nasdaq 100, and the S&P 500. Goldman Sachs released its year-to-date list of best-performing assets, placing Bitcoin at the top, according to Documenting Bitcoin, a Twitter account.
The tweet mentions the latest data released by Goldman Sachs displayed in a chart of market performance researched by Goldman Sachs. In this chart, the 25 markets currently at the top showcase their total returns and risk-adjusted returns.
Bitcoin was placed at the top in regards to total return, with 27%, while the second place was gained by MSCI Emerging Markets Index with 8%. Also, with a Sharpe Ratio of 3.1, BTC is also at the top of the list involving risk-adjusted returns. Since Goldman Sachs released the charts, BTC observed its price rise.
Bitcoin has been compared to gold in the past, both being considered a hedge against inflation and a store of value. In the global investment bank’s list, gold ranked below Bitcoin in the two categories mentioned above. Gold has a Sharpe Ratio of 2 and a 6% total return. The higher the Sharpe Ratio is, the more returns were yielded by the investment related to a certain risk level.