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Bitcoin-Centric Companies Outpace BTC Returns in 2023: A Matrixport Analysis

In the landscape of 2023’s financial markets, companies focusing on Bitcoin, including miners and exchanges like Coinbase, have exhibited a striking outperformance compared to Bitcoin’s own returns, marking a notable shift in investor strategies.

According to a report from Matrixport, a cluster of publicly listed Bitcoin mining companies alongside Coinbase have collectively demonstrated an impressive return of +266%, surpassing Bitcoin’s individual performance by a significant margin of +150%.

This exceptional outperformance signals a changing trend in investor preferences, even amid considerable fluctuations in the performance of these entities.

In recent market developments, Coinbase Global Inc. (COIN) has particularly stood out with a remarkable uptick in its stock performance. Experiencing a staggering surge of 280% year-to-date, the stock soared to unprecedented yearly highs, nearly hitting $148, as per data from Yahoo Finance. Meanwhile, Bitcoin (BTC) is presently trading at $41,029, according to CoinGecko data.

Despite Bitcoin’s own formidable performance, surpassing the Nasdaq stock exchange by an impressive +100%, as indicated by Matrixport, the cryptocurrency experienced a noteworthy surge of +150% in its market capitalization, outshining Nasdaq’s comparatively modest +53% increase. This stellar showing has triggered discussions among investors regarding the potential allocation of additional capital into Bitcoin for the upcoming year, the report highlights.

Furthermore, Matrixport’s analysis indicates that Bitcoin has outperformed many layer-1 tokens. On a risk-adjusted basis, Bitcoin has outpaced its closest competitor, Ethereum (ETH), which saw an increase of +83% on a year-to-date basis, showcasing Bitcoin’s resilience and superiority in the crypto market landscape.

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