In a memorable year, Bitcoin (BTC) significantly outperformed major assets and indices, gaining 144% in 2023.
Looking back, Bitcoin price made a comeback in 2023. The leading cryptocurrency struggled last year due to a general setback in the industry that culminated in many leading companies, most notably FTX, filing for bankruptcy.
However, Bitcoin should not be denied its opportunity in 2023 as it benefits from hype surrounding improving macroeconomics and returning market confidence in the digital asset ecosystem. In the last 12 months, BTC gained 144%, recouping almost all of its losses in 2022.
The recovery also saw Bitcoin outperform other major asset classes and indices. For example, Bitcoin's triple-digit returns significantly exceed those of gold (+14%) and the major US stock index S&P 500 (+25%).
Further review shows that Bitcoin has outperformed gold and the S&P 500 in various annual periods since its inception in 2009. In fact, it was only in 2022 that the two assets outperformed BTC, underscoring the severe market pullback experienced by Bitcoin The cryptocurrency suffered this year.
Happy New Year. Here is the full Bitcoin scoreboard: pic.twitter.com/Mwj1vemWNN
— Dan McArdle (@robustus) January 1, 2024
Bitcoin is starting the new year with a high
Even though the past year is now in review, several factors point to BTC heading into 2024. Chief among these factors is the highly anticipated approval of the first batch of spot Bitcoin ETFs in the United States.
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This milestone, expected as early as January 10, potentially opens up BTC access to a broad community of institutional investors who may have been sidelined by the lack of a traditional investment vehicle for the asset. Big players like Blackrock, Fidelity and VanEck pushing BTC as an investment for traditional investors are all seen as positive for Bitcoin prices heading into the new year.
Finally, the Bitcoin network remains on schedule for a supply halving in April 2024. The pre-programmed supply cut would reduce the current BTC issuance of 6.25 BTC per block to 3,125 BTC, increasing the cryptocurrency's scarcity. Halving events typically mark a key point in Bitcoin's historical four-year cycles, bringing with it a new all-time high for BTC prices.
In fact, Bitcoin investors undoubtedly have a lot to look forward to for BTC holders in the new year.
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Disclaimer: This content is for informational purposes and should not be considered financial advice. The views expressed in this article may contain the personal opinion of the author and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic assumes no liability for any financial losses.
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