A recent quarterly report from Canaccord reveals that digital assets have outperformed traditional stock markets this year, with Bitcoin (BTC) taking the lead. By the end of the last quarter, Bitcoin had surged approximately 140% year-over-year, surpassing Ethereum (ETH), which rose around 60%, and the S&P 500, which increased by nearly 30% in the same timeframe.

The report attributes some of this growth to the Federal Reserve’s recent interest rate cut of 50 basis points, which has benefited both equities and digital assets. Although the need for inflation hedges has diminished, Bitcoin continues to behave like other risk assets, enjoying advantages in a “lower-rate environment” with a correlation of 0.4 to these assets.

Looking ahead, if Bitcoin adheres to its historical patterns following halving events, a major price rally could initiate between now and April 2025, with potential new highs anticipated 2-6 months post-halving. Additionally, the report highlights a 7% increase in stablecoin supply during the third quarter, pointing to heightened activity within the digital asset space. Canaccord is optimistic that these favorable market conditions, along with upcoming exchange-traded funds (ETFs), will further propel the growth of digital assets.