This year, the confluence of global geopolitical tensions, elevated interest rates, and soaring inflation led to a major rally in the crypto world as major cryptocurrencies once again acted as a haven of safety for investors. In 2023, Bitcoin (BTC-USD) and Ethereum (ETH-USD) soared by a massive 157% and 95%, respectively.
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In sync, other top cryptocurrencies such as Solana (SOL-USD) and Ripple (XRP-USD) skyrocketed by 848% and 81%, respectively, during this period. Additionally, the rising crypto tide has also boosted the fortunes of crypto miners such as Riot Platforms (NASDAQ:RIOT), Marathon Digital (NASDAQ:MARA), and HIVE Digital (NASDAQ:HIVE) (TSE:HIVE). With the rising anticipation of crypto ETFs and the upcoming Bitcoin halving, crypto miners have continued to boost their HODL (Hold on for Dear Life) crypto hoards. Moreover, HIVE and Bit Digital (NASDAQ:BTBT) are leading the charge in boosting their crypto mining fleets.
This year, we also saw a major 361% rally in cloud computing company MicroStrategy (NASDAQ:MSTR). MSTR is more renowned for its massive Bitcoin holding. Its Executive Chair, Michael Saylor, sees BTC spot ETFs as the biggest development on Wall Street in the last thirty years. While multiple companies are going for major share repurchases, MSTR has sold shares to the tune of $610 million, choosing to increase its Bitcoin holdings by nearly $616 million to over $8 billion this month.
So, what’s in store for the crypto world as we step into 2024?
Institutional participation in cryptocurrencies could be a driving force next year. The SEC recently asked at least two companies hoping to launch spot BTC ETFs to submit final changes by the end of this week. Blackrock (NYSE:BLK), Grayscale Investments, and ARK Investments are some of the names that held discussions with the SEC. A final verdict from the Commission on ARK and 21 Shares’ joint proposal is anticipated by January 10.
While cryptocurrencies could remain as volatile as ever next year, mounting troubles could see Binance (BNB-USD) cede its leading market position to competitors. Ethereum stands to gain next year as the user base on its platform could increase owing to the demand for crypto applications.
While the current chart setup suggests BTC could see some price weakness over the coming days, some quarters of the market see the crypto bellwether hitting the $250,000 mark next year.
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