Bitcoin, yet again, continues to capture headlines and investor attention, with 2023 marking yet another year of significant growth and institutional interest. As we look ahead to 2024, several key developments are to shape the road ahead.
Bitcoin’s Performance in 2023
Throughout 2023, Bitcoin reaffirmed its status as the VIP asset class, outperforming traditional investments such as stocks, bonds, and gold by a big margin. With a remarkable surge of over 150% since the year’s outset, truly, that’s very impressive.
Surge in institutional interest was huge trend of 2023. After all BlackRock made an application for a Bitcoin ETF, in June. That move incentivized other major players in financial industry. Including Invesco, ARK, Fidelity, VanEck, and Franklin Templeton. Rumors of ETF approval fueled optimism in the market, which caused big gains in BTC’s price.
Hashrate Surge and Technological Advancements
Another notable development in 2023 was the significant growth in the energy used to mine Bitcoin, with the mining hashrate doubling. Furthermore, maturation of the Lightning Network made Bitcoin more usable for smaller investors.
Anticipating the Halving and ETF Approvals
Looking ahead to 2024, two significant events are for sure to impact Bitcoin’s trajectory: Halving and ETF.
The halving, expected to occur at block 840,000 in late April, will halve the new issuance of Bitcoin, historically signaling the bull market.
Additionally, the approval of spot Bitcoin ETFs, most likely to occur very soon, is sure to attract lot of investors. Those two factors will surely affect BTC’s price positively.
Bitcoin’s Role Amid Global Financial Uncertainty
As the world’s economy goes through uncertain times, Bitcoin might become even more important. People and big institutions might turn to Bitcoin because it’s seen as a stable and reliable way to protect against financial chaos. Plus, Bitcoin is gaining more support from politicians and is being used more by people and businesses around the world.
