Bitcoin proved to be the star of the show in 2023, surpassing all expectations by outperforming gold by a factor of 10. The leading cryptocurrency experienced a remarkable resurgence after a difficult 2022, during which the industry faced numerous setbacks, including the bankruptcy filings of prominent companies like FTX.
However, 2023 marked a turning point for Bitcoin, as improved macroeconomics and a renewed sense of confidence in the digital asset ecosystem propelled its price to a staggering 144% gain over the course of the year. This impressive rebound not only erased the losses incurred in the previous year but also surpassed the performance of other major asset classes and indices.
For instance, Bitcoin’s triple-digit returns far exceeded those of gold, which only saw a 14% increase, and the S&P 500, which recorded a modest 25% gain. In fact, when considering various yearly timelines since Bitcoin’s inception in 2009, it becomes evident that the cryptocurrency has consistently outperformed both gold and the S&P 500, with the exception of 2022.
As Bitcoin enters the new year on a high note, several factors bode well for its future performance. One particularly anticipated development is the approval of the first set of spot Bitcoin ETFs in the United States, which is expected to occur shortly after the start of the year. This approval would open the doors for institutional investors who have been awaiting a more traditional investment vehicle for Bitcoin, potentially driving up its prices.
Moreover, the Bitcoin network is on track for a supply halving in April 2024, an event that historically leads to new all-time highs for BTC prices. This programmed supply cut would decrease the issuance of new BTC from 6.25 to 3.125 BTC per block, heightening the cryptocurrency’s scarcity.
All in all, Bitcoin investors have much to be excited about in the new year, with promising developments on the horizon and a track record of outperforming traditional assets. With the stage set for further growth, Bitcoin continues to solidify its position as a leading investment choice for both seasoned and new market participants.