(CTN News) – Bitcoin (BTC) had a remarkable year in 2023, achieving an impressive 144% increase and surpassing other major assets and indices.
The recent surge in Bitcoin’s value added a staggering $530 billion to its market capitalization, demonstrating a strong recovery from the 65% decline it faced in 2022.
The decline in the previous year was influenced by stricter monetary policies and various challenges within the industry, including the bankruptcy of major companies like FTX.
According to CoinMarketCap data, the price of surged by $25,506 in 2023, reaching $42,208. The highest point for this digital currency was reached in November 2021, when it reached $67,802.
Bitcoin’s performance in 2023 not only showcased its recovery but also its outperformance compared to other major asset classes and indices. With a triple-digit return, it significantly outperformed gold, which saw a 14% increase, and the S&P 500, which experienced a 25% rise.
Throughout its history since its inception in 2009, Bitcoin has consistently outperformed gold and the S&P 500, except for 2022. This trend highlights resilience and its potential as a leading digital asset.
Bitcoin starts the new year with a strong performance.
Looking forward to 2024, there are several factors that seem to be in favor of Bitcoin. One significant development is the expected approval of the first batch of spot ETFs in the United States, which could happen as early as January 10th.
This approval has the potential to attract a wider range of institutional investors, including major players like Blackrock, Fidelity, and VanEck, who have already shown interest in BTC as an investment option.
Additionally, the Bitcoin network is on track for a supply halving in April 2024. This event will reduce the issuance of BTC from 6.25 BTC per block to 3.125 BTC, thereby increasing the scarcity of the cryptocurrency.
In the past, halving events have played a crucial role in four-year cycles, often leading to new record-high prices for BTC.
As we enter the new year, the outlook for Bitcoin and its investors is filled with excitement and potential, which stands in stark contrast to the challenges faced in the previous year.