The first half of the year is almost over and gold and silver are doing increasingly well. But one asset is outperforming the growth in the commodity market: Bitcoin.

As data from the Week On-chain Report shows, global market liquidity has been experiencing an upswing since October 2022. Digital asset prices and precious metals prices have become increasingly positively correlated since then. After a strong first quarter, both asset classes are currently experiencing their second upward correction this year. Over the past 90 days, gold (XAU) and silver (XAG) have risen by 7.5 per cent and 12.7 per cent respectively.

Bitcoin, on the other hand, continues to outperform and is 14.5 per cent above its February close. BTC's performance is thus weaker than the peak performance of 72 percent in the first quarter, but it remains the strongest value among the most important commodities.

The market for digital assets is thus outperforming the commodities sector so far in 2023 as well. In recent weeks, however, all asset classes are experiencing a significant correction. At the time of writing, Bitcoin is trading at 27,152 US dollars - in April, the reserve currency was still at 30,000 US dollars.

Bitcoin: The digital gold

Due to high inflation and the collapse of several banks, bitcoin and gold are growing equally. The correlation of both assets is at a two-year high. The current price trend of Bitcoin (BTC) is also reminiscent of the rise in gold prices in the 1970s. Then, as now, US inflation was at a comparatively high level.

Should BTC actually experience a price development similar to that of the precious metal, the 100,000 US dollar mark could be broken within the next few years. The prerequisite for this is that the price continues to develop sustainably and that global crypto adoption progresses.