2023 in Review: Bitcoin dominates the year as best-performing asset; here's how equities, gold and bonds performed

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Also Read: Five assets that could beat inflation in 2024 This is a noteworthy turnaround from 2022, when Bitcoin witnessed a significant 65% dip amid tightening monetary policy and a series of blowups that exposed high counterparty risk. Bitcoin price has jumped $25,506 in 2023, reaching $42,208, according to CoinDesk prices.

The highest level of this digital currency was hit in November 2021, when it topped $67,802. Also Read: Bitcoin Jumps 160% in 2023 amid roller coaster ride; What lies ahead for cryptocurrencies? At the outset of 2023, the cryptocurrency sector faced a multitude of challenges, such as the FTX and TerraLuma debacle, regulatory scrutiny, legal actions against prominent exchanges, and the closure of doors by several nations due to concerns about relinquishing economic control to private currencies, which cast a cloud of negativity over the market.

Amidst these hurdles, savvy investors, particularly large asset-backed institutional players like BlackRock, Fidelity, Valkyrie, and others, seized the opportunity. Let's look at the performance of other major asset classes in 2023: The Indian market saw a remarkable rally in 2023, with key benchmark indices -Nifty 50 and S&P BSE Sensex - gaining 20%.

The surge can be attributed to robust participation from retail investors and sustained Foreign Portfolio Investor (FPI) inflows, propelling frontline indices to break multiple record highs. The most significant phase of the market rally unfolded between November and December, following the BJP's victory in three crucial state elections.

This outcome signalled the potential return of the NDA in the 2024 general elections. Also Read: 2023 in Review: FPI inflows recorded at ₹1.65 lakh crore, highest since 2020;