2023 Glimmers of Hope: Crypto Resilience, ETF Approval, and the Road to $100K Bitcoin
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Cryptocurrencies had a flourishing year in 2023, despite being marred by fraud and scandals. The primary cryptocurrency, Bitcoin, experienced an annual increase of 160%. Bitcoin is often referred to as the “gold” of cryptocurrencies. The year 2023 was characterized by scandals, bankruptcies, fraud, and regulatory issues in the cryptocurrency market, which has been in existence for fourteen years. However, amidst the negative coverage, the industry made significant progress.
Bitcoin emerged as the top cryptocurrency with a year-to-date gain of 160%. The sector also achieved victories in two high-profile court disputes. Additionally, there are expectations that a traditional investment product will be approved in January, which could attract a wave of new investors. Factors such as inflation easing, economic growth, and a potential halt in the Federal Reserve’s interest rate rises contributed to a better macroeconomic outlook. This, in turn, bolstered digital assets and the global financial markets.
Year of crypto resilience
Kyla Curley, a crypto specialist and partner at worldwide consulting firm StoneTurn, referred to 2023 as the “year of crypto resilience.” She believes that the industry’s persistence despite the lack of explicit rules is due to the continuous exertion of influence by US authorities, particularly the Department of Justice. Curley explains that fraud will always exist because human nature is unstoppable, and rule-breakers will find a way in.
One of the notable negative aspects of the year was the involvement of Bankman-Fried, a once-heralded billionaire. In November, he was convicted of running a multibillion-dollar scam through his FTX trading platform over several years. Bankman-Fried was a prominent player in the cryptocurrency industry in 2023. The trial of Bankman-Fried, also known as SBF, became the most publicized event of the year for both cryptocurrency supporters and detractors. It revealed the short-lived scam behind FTX, which attracted millions of conventional investors with the promise of an easy entry point into the digital asset world. The rise and collapse of SBF became compelling evidence for crypto skeptics.
However, the conviction of Bankman-Fried was also seen as a positive development by crypto enthusiasts. They considered it a late purging of a rotten apple. Just a few weeks after the decision, US officials achieved another victory in law enforcement. Changpeng Zhao, also known as CZ, the founder of the popular cryptocurrency trading platform Binance, admitted guilt to allegations of money laundering in a $4 billion settlement.
Progress for builders and a setback for scammers
According to Faryar Shirzad, the chief policy officer of Coinbase, 2023 was a year of progress for builders and a setback for scammers. Many heinous criminals operating in the cryptocurrency industry were no longer active by the end of the year. This was a positive sign for investors, and Bitcoin experienced a surge of 23% to reach $44,000, its highest level in 18 months.
One of the most anticipated events for the cryptocurrency industry in 2024 is the approval of the first spot Bitcoin exchange-traded fund (ETF) in the US market. This ETF would allow investors to track the price of Bitcoin without actually holding the cryptocurrency. It provides a low-risk entry point for regular people who are skeptical of the crypto market. The possibility of regulatory control also provides a buffer for mainstream investors. The approval of the spot Bitcoin ETF, combined with the upcoming halving of Bitcoin, sets an optimistic outlook for the industry.
“The halving” refers to the event where the supply of Bitcoin tokens is cut in half every four years by an algorithm. This event is expected to take place in 2024 and is often seen as a catalyst for increasing the value of Bitcoin. Antoni Trenchev, the co-founder of crypto lender Nexo, believes that the halving in 2024 will be the pinnacle geek event for Bitcoin enthusiasts. According to historical trends, the peak of Bitcoin may not occur until 2025, with 2024 serving as a prelude to the main event. Trenchev predicts that Bitcoin could soar over $100,000, reaching a value of $140,000 by the end of the year, thanks to the approval of the spot ETF and the halving.
In conclusion, despite facing fraud and scandals, cryptocurrencies had a successful year in 2023. Bitcoin emerged as the top cryptocurrency with a significant increase in value. The industry also made progress in legal disputes and saw the conviction of prominent players involved in scams and money laundering. The anticipated approval of the first spot Bitcoin ETF in the US market and the upcoming halving of Bitcoin contribute to a positive outlook for the industry in 2024.
