2023 saw the cryptocurrency market stabilize and grow, as Bitcoin experienced significant price fluctuations. In January, the price of BTC hit its lowest point since November 2020, reaching around $16,000.
However, Bitcoin began to rebound in the second half of the year, driven by news and expectations of the approval of a Bitcoin ETF in the United States. This allowed the cryptocurrency to surpass the psychologically important $40,000 mark. Overall, Bitcoin’s price increased by over 50% throughout the year, signaling a potential end to the crypto winter.
Notable events for Bitcoin in 2023
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Banking challenges: In March, the cryptocurrency industry faced a significant test with the collapse of SVB, Silvergate, and Signature banks. This event raised concerns about stablecoin support and led to increased interest in BTC. Some speculated that American investors shifted their focus to Bitcoin amidst the banking collapse and diminishing trust in the traditional banking sector. As a result, the BTC price reached a nine-month high, surpassing $27,900.
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Boom of BRC-20: The introduction of the BRC-20 token standard on the Bitcoin blockchain, utilizing the Ordinals protocol, marked a significant shift in BTC usage. This new class of fungible tokens offers similar functionality to Ethereum’s ERC-20 standard. While some community members view BRC-20 as a valuable innovation, expanding Bitcoin’s utility beyond simple transactions, others express concerns about increased transaction fees and network congestion.
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Heightened regulatory pressure on exchanges: The US Securities and Exchange Commission (SEC) initiated an investigation into the Kraken crypto exchange early in the year and later turned its attention to Binance and Coinbase. The regulator not only leveled serious charges against both exchanges but also declared 19 crypto assets traded on these platforms as securities. Though Bitcoin was not included in this list, it still experienced a 5% drop, falling to $25,000.
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Anticipation of a Bitcoin ETF: Despite exchange-related challenges, Bitcoin’s price surpassed $30,000 in June due in part to a significant event in the American investment market. BlackRock filed for the launch of the iShares Bitcoin Trust, a Bitcoin spot ETF, while other major firms followed suit. Although some applications were rejected, and others are still under consideration, the overwhelming demand for Bitcoin ETFs from institutional players sent a positive signal to the market, driving further growth based on future prospects.
Looking ahead to 2024
The crypto community is optimistic about the coming year, with two key expectations fueling beliefs in the continued growth of Bitcoin and other major cryptocurrencies.
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Approval of a Bitcoin ETF: The introduction of a spot Bitcoin ETF in the US could have a transformative impact on the entire industry. The crypto market’s capitalization would significantly increase due to institutional capital injections, Bitcoin would become a more widely adopted investment instrument, and its integration with global financial markets would deepen. This scenario could potentially trigger a new bullish rally and unprecedented growth for the leading cryptocurrency.
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The Bitcoin halving, a programmed event occurring approximately every four years, is set to happen in spring 2024. Following the halving, the mining reward for Bitcoin will be halved. Historically, Bitcoin has experienced bear markets between halving cycles, with price surges occurring several months before and after the halving. If this pattern persists, we can expect BTC’s price to multiply in 2024.
Begin the new year with clean BTC
Uncertainty remains a constant in both cryptocurrency and traditional markets. To prepare for any scenario, including the need to quickly sell coins, it is advisable to clean your bitcoins in advance to avoid potential issues. Mixer.money offers secure and anonymous coin cleaning services. By sending your BTC to the mixer, you will receive cleared coins from reputable crypto exchanges in return. These coins are not tracked by analytics software, ensuring heightened security and privacy. Mixing usually takes up to six hours, with service commissions up to 5% through the website and up to 4.5% through the bot, plus a standard fee of 0.0007 BTC. For maximum security and anonymity, TOR mirrors can be used to access the site. Take control of your keys, clean your BTC promptly, and be prepared for whatever the new year brings.