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The Bitcoin Gamble that Paid off Big Time – BTC’s Demand Shock Drives 2023 Up 160%!
Bitcoin holds an impressive 160% rebound in 2023, with a remarkable increase of over $500 billion in market value. Bloomberg reveals that investor risk appetite is back in the crypto market, boosted by high hopes for the first Bitcoin exchange-traded fund (ETF) getting regulatory approval this month.
Michael Saylor, MicroStrategy Inc’s co-founder, said, “The approval of the spot ETF is going to be a major catalyst, it’s definitely going to be a demand jolt.”
The pending decision by US regulators on the spot Bitcoin ETFs has been a significant driving factor in Bitcoin’s price resurgence. Bulls believe a favorable outcome will expand Bitcoin’s investor base. This year, BTC has significantly outperformed traditional assets like stocks and gold.
Supporters point to the upcoming Bitcoin “halving” event in 2024 as a catalyst. This event limits BTC supply growth, offering essential support for its price.
Bitcoin’s Resilience Amidst Legal Challenges
While optimism returns to the crypto market, critics argue that digital assets still lack inherent value and remain a haven for criminals. The ongoing legal challenges in the crypto industry continue to highlight the existing risks. Nonetheless, the crypto derivatives market has seen record activity this year, indicating significant infrastructure growth.
Binance is still the foremost trading venue leading the crypto exchange but its market share is no longer as dominant as other exchanges are gaining traction. Liquidity and market depth are improving gradually following the FTX collapse. An enhanced crypto market structure could reignite the high-interest levels seen during the pandemic stimulus boom.
Top crypto stocks such as Coinbase, MicroStrategy, and crypto miners Marathon and Riot have significantly outperformed BTC, demonstrating a bullish outlook. Investors are focused on long-term growth potential, disregarding near-term legal challenges.
Decentralized finance protocols that are focused on staking and liquidity have also attracted strong interest despite struggling after the collapse of TerraUSD. Non-fungible token trading volumes have picked up gradually from the lows experienced in October, signifying a gradual recovery in crypto demand.
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