Bitcoin continues to hold its status as the best-performing asset class in 2024, despite a “seasonally weak” third quarter, according to a recent report from the New York Digital Investment Group (NYDIG).

The cryptocurrency registered a modest gain of 2.5% during Q3, recovering slightly after a decline in the previous quarter. Year-to-date, Bitcoin has seen a 49.2% increase.

NYDIG's research head, Greg Cipolaro, noted that trading has remained largely range-bound for the past six months, influenced by significant market headwinds.

Among these are the anticipated distributions from Mt. Gox and Genesis creditors, totaling nearly $13.5 billion, and substantial sell-offs of Bitcoin by the U.S. and German governments.

Despite these challenges, Bitcoin defied historical trends by rising 10% in September, a month typically characterized by bearish performance. Factors contributing to this rise include heightened demand for U.S. spot exchange-traded funds (ETFs), which attracted $4.3 billion in total flows during the quarter.

Additionally, corporate investments in Bitcoin have increased, particularly from firms like MicroStrategy and Marathon Digital.

Cipolaro highlighted that Bitcoin's correlation with U.S. stocks rose to 0.46 by the end of Q3, suggesting a growing relationship with equities; however, it remains relatively low, indicating potential diversification benefits for multi-asset portfolios.

Looking ahead, Cipolaro pointed to the upcoming U.S. presidential election on November 5 as a significant factor that could influence Bitcoin's market performance in Q4.

He suggested that a potential victory for former President Donald Trump could lead to greater gains for the crypto, given his favorable stance toward the industry.