After enduring a tough calendar year, the crypto community started 2023 with a sense of optimism and hope. The market was struggling to recover from the downturns caused by the Terra and FTX crises. Don’t forget that the FTX implosion threw Bitcoin to its lowest low, sent several crypto firms out of business, and rendered millions of investors helpless.
This development intensified the call for authorities to fully regulate the crypto industry. Therefore, it was not surprising to see numerous countries of the world coming up with different regulatory frameworks in the early months of 2023. While some countries have been friendly in their approach toward regulating crypto, others have been hellbent on cracking down on the industry.
Despite the regulatory challenges, the industry leaped forward in 2023, recording landslide strides in adoption and groundbreaking technological advancements. As we commence the new year, we revisit some of the major highlights that clearly defined the crypto industry in 2023.
Major Highlights
The first major highlight of the year that sums up the year for crypto occurred in March with the collapse of the U.S. banking system. Some of the banking giants fingered in the crisis include Silicon Valley Bank, Silvergate, and Signature. Prior to the crisis, these banks were among the high-prolific banks in the United States.
Without a doubt, the issue opened the eyes of the people to the debacles of the traditional banking system. At the height of the crisis, people began to find solace in crypto, thus pushing the price of Bitcoin to $26k, its biggest value since June 2022.
Amid the renewed interest in the industry, traditional financial firms began to embrace crypto, with the likes of BlackRock showing interest in spot Bitcoin ETFs. This development marked a remarkable step forward for crypto as other financial giants, including Fidelity also renewed their interests in spot ETF offerings. While the excitement greeting the possible approval of these filings in 2024 have sent Bitcoin to over $40k, there is still more to look forward to.
What’s next for the crypto industry in 2024?
The crypto industry is gearing up for a new year and there are rising expectations already. We expect the industry to enjoy tremendous growth. This is due to how the crypto landscape ended the year on a more positive note. In the new year, crypto enthusiasts are optimistic that BTC will record more gains and surpass the $50k benchmark for the first time since late 2021.
Meanwhile, there are many drivers fueling this expectation as we head into 2024. BTC enjoyed a steady price rally that saw it soar by more than 80% in the second half of 2023. Consequently, things are expected to get even better in 2024. By next April, the Bitcoin halving will take place, and miners’ rewards will further be slashed by 50%.
Over the years, Bitcoin halving has proven to be one of the most effective value control mechanisms relating to the largest cryptocurrency by trading volume. The main aim of Bitcoin halving is to regulate the production of new BTC hitting the market. More so, in past years when we witnessed Bitcoin halving, BTC mostly reacted with a noticeable price rally. Heading into 2024, crypto enthusiasts are optimistic that BTC’s price will rally high.
Likewise, crypto market participants are looking forward to the approval of exchange-traded funds (ETFs) tied to the spot price of Bitcoin. Asset managers like BlackRock, VanEck, Invesco, and Wisdom Tree among many others are optimistic that they’ll obtain regulatory approval heading into the new year. Also, there are emerging pointers that we may witness the approval of Bitcoin ETF by January 2024.
The potential approval of the Bitcoin ETF is indeed a big win for the industry. Over the last decade, the SEC has turned down a host of applications for Bitcoin ETF by asset managers.
Conclusion
Without a doubt, 2024 will be a big year for the crypto landscape. The expectation is tied to the occurrence of two major events that are likely to push the price of Bitcoin up and in return will impact the industry positively. All fingers remain crossed as we head into a big year for the crypto market.