This year has undoubtedly been a transformative period for Bitcoin, witnessing unprecedented growth and shifting perceptions in the realm of digital assets.
As mainstream investors increasingly embrace cryptocurrency, Bitcoin has evolved from a speculative novelty into a significant component of diversified portfolios, garnering attention from global financial institutions.
Bitcoin’s Performance in 2023
In contrast to the tumultuous year of 2022, Bitcoin commenced 2023 slightly above $16,000 USD defying expectations of a stagnant crypto market.
By December, Bitcoin reached a 12-month high of $45,000 USD reflecting a remarkable 180% gain, showcasing its unexpected resilience in the face of challenging economic conditions and emphasising its potential and growing appeal as an alternative investment.
Key Catalysts and Influences
In 2023, Bitcoin experienced significant price fluctuations influenced by pivotal events.
The collapse of Silicon Valley Bank (SVB), the 18th largest bank in the US, emerged as a turning point, thrusting crypto back into the spotlight after the 2022 bear market.
SVB’s turmoil, triggered by a sell-off in US Treasuries, exposed the risks of the fractional reserve banking system. The subsequent loss announcement on its US Treasury holdings led to a classic bank run, with customers withdrawing $42 billion USD in a single day.
This banking failure underscored the advantages of decentralised currencies, contributing to Bitcoin’s surge to over $30,000 in April and maintaining momentum throughout 2023.
Amid regulatory challenges, BlackRock’s entry into crypto also marked a positive shift.
In June, BlackRock’s iShares unit filed for the iShares Bitcoin Trust, seeking approval for a spot Bitcoin ETF.
The filing, backed by BlackRock’s financial influence and CEO Larry Fink’s prominence, gained attention for its potential to provide a regulated investment vehicle and adherence to market integrity and transparency standards.
This development injected optimism into the crypto industry, with Bitcoin’s value surging to just under $26,000 USD.
The subsequent appearance of the proposed ticker on the Depository Trust & Clearing Corp.’s website in October further fuelled positive sentiment, propelling Bitcoin’s price to $35,000 USD.
Bitcoin vs. Equities Performance
As of December 13, 2023, a comparative analysis reveals Bitcoin’s performance against prominent market indices and individual stocks.
Notably, Bitcoin showcased a substantial +49.5% gain, outperforming major indices such as NASDAQ 100 (+49.5%), S&P 500 (+20.5%), Dow Jones Industrial Average (+9.8%), and ASX 200 (+4.1%).
However, when juxtaposed with individual stocks, Coinbase (COIN) and NVIDIA (NVDA) stood out with remarkable gains of +310.8% and +225.7%, respectively.
It’s noteworthy that both Coinbase and NVIDIA are intricately linked to Bitcoin, as Coinbase is a leading crypto exchange, and NVIDIA is a major producer of dedicated Bitcoin-mining GPUs, highlighting the symbiotic relationship between Bitcoin and crypto-adjacent companies.
Looking Ahead to 2024
In 2024, Bitcoin faces a halving year with a historical average price increase of +192%, coinciding with the likelihood of Donald Trump’s re-election.
Analysts at VanEck anticipate even greater potential, projecting a Bitcoin price of $100,000 by December 2024, contributing to a market capitalisation of approximately $2 trillion.
This aligns with expectations of policy changes that could stimulate U.S. economic growth, uplifting both stocks and crypto tokens.
TMB Podcast Welcomes Self-Made Crypto Millionaire
Passionate about helping people invest in cryptocurrencies for maximum returns and minimal risks, Sydel’s journey began in her twenties as she immersed herself in global travel and connected with industry experts.
Image 1: Sydel Sierra, the co-founder of the Digital Wealth Group.
By the age of 30, she and her brother successfully retired, living entirely off cryptocurrencies.
Today, Sydel is dedicated to empowering individuals to achieve financial sovereignty, especially during times of geopolitical uncertainty. With a simple yet effective strategy, she aims to help others turn small investments into life-changing gains, emphasising the importance of having a Plan B in the current economic landscape.
Digital Wealth Group
Digital Wealth Group stands as a reliable resource for individuals navigating the cryptocurrency landscape.
Offering personalised coaching, Digital Wealth Group caters to those seeking to diversify their portfolios with low-to-medium risk assets and explore opportunities within the dynamic crypto market.
With Digital Wealth Group, individuals can stay ahead in this fast-paced industry, consistently making prudent investment choices and leveraging effective strategies to transform modest investments into substantial gains.
Digital Wealth Group extends a warm invitation for individuals to be part of the transformative movement that is reshaping the landscape of money, business, and society. Readers of The Market Bull can exclusively access Digital Wealth Group’s 90-minute webinar online by clicking here.