Benzinga - Bitcoin’s (CRYPTO: BTC) market capitalization has surged by 160% in 2023, an increase of $530 billion, after suffering a $1.5 trillion depreciation the previous year.
What Happened: The remarkable rise was spurred by investor optimism that U.S. regulators might soon approve the first Bitcoin-focused exchange-traded fund or ETF.
The decision, expected by Jan.10, could cause a “demand shock” in the market, according to Michael Saylor, co-founder of MicroStrategy Inc. (NASDAQ:MSTR), reported Bloomberg.
According to Saylor, "the approval of the spot ETFs is going to be a major catalyst, it's going to definitely drive a demand shock" as crypto investors currently lack a "high bandwidth, compliant" investment channel for the token.
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Despite facing challenges such as a $4.3 billion fine for Binance and CEO Changpeng Zhao’s subsequent resignation, as well as fraud charges against FTX’s Sam Bankman-Fried, Bitcoin’s 2023 performance outperformed global stocks and gold.
Other crypto markets, including Coinbase Global Inc. (NASDAQ:COIN), also saw gains, with a nearly 400% rise despite an ongoing SEC lawsuit.
Why It Matters: The Bitcoin rally has been accompanied by a decrease in reports declaring Bitcoin’s demise, reaching a decade-low in 2023.
Bitcoin derivatives also saw increased activity, with Bitcoin futures open interest reaching new highs at CME Group, giving Binance a run for its money in this market.
However, the effects of past setbacks are still visible, with the total daily value of Bitcoin trades on exchanges falling by 55% since April of the previous year, the report noted.
Price Action: At the time of writing, BTC was trading at $43,463.20, down 1.25% in the last 24 hours, according to Benzinga Pro.
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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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