Bitcoin has experienced a remarkable turnaround in 2023, surging 154% from the dismal end of 2022. This dramatic increase is attributed to several key factors, including growing institutional adoption and changes in monetary policy. Furthermore, the consensus that the U.S. will likely embrace exchange-traded funds (ETFs) based on the spot bitcoin price has instilled renewed optimism in the cryptocurrency market.
The anticipated abandonment of the U.S. opposition to spot ETFs is expected to generate billions of dollars in demand for bitcoin from investors seeking legal assurance for their holdings and those who prefer to avoid the complexities of digital wallets. Additionally, the programmed slowdown in the supply of new bitcoin, expected in the middle of next year, has contributed to the token’s rebound.
As a result of bitcoin’s resurgence, the entire crypto market has seen a 110% gain for the year, bringing its value to an impressive $1.73 trillion. Notably, bitcoin now accounts for half of all crypto assets, up from 38% at the end of 2022. Despite this positive development, the current value is still down from the record high of $3 trillion in November 2021, when bitcoin reached $61,500.
Throughout the year, bitcoin experienced significant milestones that fueled its surge. These include the entry of major players such as BlackRock and Ripple’s legal victory, as well as the convictions of industry leaders and regulatory developments. Overall, the cryptocurrency has demonstrated resilience and strength, alluding to its potential for continued growth and innovation in the future.
Read More Bitcoin News
