 | GLOBAL CRYPTO MARKET CAP | |  | 24H CRYPTO MARKET VOLUME | |  | BITCOIN'S DOMINANCE | | |
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All data as of: 25 Dec 2023 10 AM UTC |
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It's the season for reflection as the crypto community slows down during the last week of December. Here at CoinMarketCap, we usually serve up trending news. But with the wider world on holiday, crypto headlines are on ice. So this week, we're spicing things up by taking a peek back at the year 2023. Over the next editions, we'll dive deeper into the biggest hacks, top news events and predictions for 2024. But today, let's stick to the basics. |
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Several fundamental developments drove Bitcoin's resurgence in 2023, so let's recap its key events! |
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BTC kicked off January near the $16k floors it plunged to after FTX exploded. However, it swiftly recovered within the first quarter back above the $24,000 level. The ride remained bumpy though. When crypto-centric Silvergate Bank faced liquidity issues in Q1, Bitcoin briefly dipped under $20,000 again before quickly reclaiming higher ground. Then came the June surprise... BlackRock itself applied for a spot BTC ETF! Though the SEC earlier rejected spot ETF applications, BlackRock's industry heft built momentum. Flying high on the news, BTC broke through $40k in October for the first time since the crash of '22. While still awaiting an ETF, the market anticipates it could attract significant institutional investment. But how exactly will a spot Bitcoin ETF impact Bitcoin's price if approved? Read this article! |
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Bitcoin Dominance Went Up! | Our main man BTC also cranked its market cap dominance over altcoins this year. Having started 2023 around 40%, Bitcoin gained over 52% dominance by year's end. This underscored its role as the tide that floats all boats - when BTC rises, altcoins follow its trajectory. Investors also shifted to Bitcoin as a relatively safe haven. Its growing macro significance manifests in rising mainstream government adoption across Central America too. And just recently, the Colombian President officially became a Bitcoin holder and promised development in the country using crypto and blockchain! |
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Volatility and On-Chain Metrics |
Volatility-wise, BTC's 30-day annualized volatility dipped to an all-time low in August. At the same time, BTC ranged tightly around $29,000 for weeks on slumping volumes. In the past, extended range periods preceded some wild price action... Right on cue, October's rally validated this premise. The lesson: periods of weird calm often set up the biggest, baddest breakouts! (not financial advice) And 1 more thing - on-chain metrics also reflected growing user adoption and activity levels throughout the year reinforcing Bitcoin's strength. Here are some major factors that signal a bull run in 2024! |
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A Visual Look Back on Bitcoin in 2023 | |
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| A look back at the major Bitcoin events, trends, and metrics that shaped the cryptocurrency in the year 2023. |
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Mining Sector Saw Some Gains |
With all the increased on-chain activity in 2023, Bitcoin miners made a fortune from big transaction fees. The Ordinals/Bitcoin NFT craze drove two massive mining revenue spikes this year. Mining stocks like Bit Digital, Bitfarms and Marathon Digital outperformed Bitcoin itself after being beaten down in 2022. Investors anticipate higher future earnings based on the upcoming halving in 2024. |
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And that brings us to our Word of the Day! |
It's Bitcoin NFTs! Bitcoin NFTs, also known as Ordinals, are digital collectibles that are directly inscribed onto the Bitcoin blockchain. Built by developer Casey Rodarmor and launched in 2023, Ordinals provide NFT-like capabilities to Bitcoin by allowing users to etch images, text, or other multimedia data onto the smallest units of Bitcoin, called satoshis. These etched collectibles can then be traded, similar to NFTs on platforms like Ethereum. Ordinals sparked a mania in 2023 as crypto enthusiasts rushed to create native Bitcoin memecoins, inscriptions, and other tokenized assets atop its immutable blockchain. But how is it even possible? Read more! |
Now back to our daily stories! |
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| And We Can't Leave Out Ordinals |
Speaking of Ordinals, the new use case also catalyzed tremendous on-chain NFT trading volume for Bitcoin in 2023. By November, BTC NFT volume had already exceeded Ethereum's as crypto users embraced inscribing collectibles on Bitcoin's immutable blockchain. Even one of the biggest Bitcoin critics, Peter Schiff, used Ordinals to sell his collectibles! |
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So in summary, 2023 marked a period of recovery, growing legitimacy and newfound utility for the world's preeminent cryptocurrency - which continues blazing the trail for the entire crypto sector. And that wraps up our recap of Bitcoin's monumental comeback year! Tune in tomorrow as we dive into another slice of the 2023 crypto pie. Until then HODLers! |
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