If 2022 was the year that tested Bitcoin’s resilience to the limit, 2023 has emerged as a period of recuperation from the turmoil.

Bitcoin has displayed remarkable resilience amid dwindling crypto values, sluggish trading activities, and challenging economic circumstances. Against the odds, it regained momentum in October after a slump during the summer.

“We’ve seen a significant recovery, but we’re just on the verge of a new cycle,” remarked Kevin Koh, co-founder and managing partner at investment firm Spartan Group.

Undoubtedly, 2023 has proven surprisingly fruitful for Bitcoin.

The flagship cryptocurrency has surged by 164% since January 1st, trading at over $40,000. It has outperformed traditional assets like gold, which saw a 10% rise, and the S&P 500 (.SPX), which achieved a 20% increase.

Bitcoin has also expanded its share of the total cryptocurrency market, climbing from 38% to over 50%, according to CoinGecko data. The overall crypto market cap has ballooned to $1.7 trillion from $871 billion at the close of 2022, with Ether’s price skyrocketing by 95%.

The majority of Bitcoin’s gains materialized later in the year, buoyed by optimism surrounding a potential U.S. spot Bitcoin exchange-traded fund (ETF) and expectations of looser monetary policies, reinvigorating investor sentiment.

Trading volumes have also rebounded, with the combined spot and derivatives trading volume on centralized exchanges reaching $3.61 trillion in November, up from approximately $2.9 trillion in January, according to CCData.

Simultaneously, stablecoins—cryptocurrencies pegged to real-world assets like the dollar—have witnessed substantial growth. Tether, the largest stablecoin, has reached an all-time high market cap exceeding $90 billion.


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