Home Latest Insights | News Bitcoin looks set to close the year up around 158% against its price of around $16,500 12 months ago

Bitcoin looks set to close the year up around 158% against its price of around $16,500 12 months ago

Bitcoin looks set to close the year up around 158% against its price of around $16,500 12 months ago

As 2023 comes to an end, the cryptocurrency market is celebrating another remarkable year of growth and innovation. Among the top performers, bitcoin stands out as the undisputed leader of the pack, having increased its value by more than 150% since January. We will take a look at some of the factors that contributed to bitcoin’s impressive rally and what challenges and opportunities lie ahead for the digital asset in 2024.

Bitcoin started the year at around $16,500, a level that was already considered high by many analysts and investors. However, the bullish momentum that had been building up since late 2020 continued to push the price higher, reaching new all-time highs almost every month. Some of the key drivers behind this surge were:

The increasing adoption of bitcoin by institutional investors, such as MicroStrategy, Tesla, Square and PayPal, who recognized its potential as a store of value and a hedge against inflation. The growing popularity of bitcoin among retail investors, especially in emerging markets, where people faced economic and political instability, currency devaluation and capital controls.

Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.

Tekedia AI in Business Masterclass opens registrations here.

Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.

The launch of several innovative products and services that made bitcoin more accessible and convenient to use, such as the Lightning Network, Taproot, Bitcoin ETFs and DeFi platforms. The limited supply of bitcoin, which is capped at 21 million coins, creating a scarcity effect that increased its demand and value.

By December 29th, bitcoin was trading at around $42,500, representing a staggering 158% increase from the beginning of the year. This means that an investor who bought $1,000 worth of bitcoin on January 1st would have seen their investment grow to $2,580 by the end of the year.

However, bitcoin’s journey was not without challenges and setbacks. The cryptocurrency market is known for its high volatility and unpredictability, and bitcoin was no exception. Throughout the year, bitcoin experienced several sharp corrections and crashes, often triggered by external events or market sentiment. Some of the most notable ones were:

The crackdown on cryptocurrency mining and trading by China, which caused a massive drop-in hash rate and liquidity in June. The announcement by Tesla’s CEO Elon Musk that the company would stop accepting bitcoin as a payment method due to environmental concerns in May.

The legal and regulatory uncertainty surrounding cryptocurrencies in various jurisdictions, such as India, Turkey and the US. The competition from other cryptocurrencies, such as Ethereum, Solana and Cardano, which offered faster transactions, lower fees and more functionality than bitcoin.

Despite these challenges, bitcoin proved to be resilient and adaptable, recovering from each dip and reaching new highs. Moreover, bitcoin continued to innovate and evolve, implementing new features and upgrades that improved its security, scalability and privacy. For example:

The activation of Taproot in November, which is the biggest update to bitcoin’s protocol since SegWit in 2017. Taproot enhances bitcoin’s smart contract capabilities, allowing for more complex and flexible transactions that are also cheaper and more private.

The development of the Lightning Network, which is a second-layer solution that enables instant and low-cost payments on top of bitcoin. The Lightning Network has grown significantly in terms of nodes, channels and capacity in 2023, making bitcoin more suitable for everyday use cases.

The emergence of decentralized finance (DeFi) on bitcoin, which is a sector that leverages blockchain technology to offer financial services without intermediaries. DeFi platforms such as Sovryn, Stacks and RSK allow users to lend, borrow, trade and earn interest on their bitcoin.

Looking ahead to 2024, there are many reasons to be optimistic about bitcoin’s future. Some of the factors that could support its growth are:

The increasing awareness and education about bitcoin among the general public, media and policymakers. The growing demand for bitcoin from institutional investors who seek exposure to alternative assets with high returns and low correlation to traditional markets.

The expanding ecosystem of products and services that make bitcoin more user-friendly and accessible to a wider audience. The ongoing innovation and development of new features and solutions that enhance bitcoin’s functionality and performance.

Of course, there are also many risks and uncertainties that could affect bitcoin’s price and adoption. Some of the challenges that could hinder its progress are:

The potential emergence of new competitors or technologies that could challenge or surpass bitcoin’s dominance or relevance. The possible occurrence of technical or security issues or breaches that could compromise or disrupt bitcoin’s network or users. The uncertain regulatory environment or hostile actions by governments or authorities that could restrict or ban bitcoin’s use or ownership.

2023 was an exceptional year for bitcoin, which demonstrated its strength and potential as a digital asset. However, 2024 will likely be another exciting and unpredictable year for the cryptocurrency market. As always, investors should be prepared for high volatility and diversify their portfolio accordingly. Bitcoin is not a get-rich-quick scheme but a long-term investment that requires patience and discipline. Those who understand and appreciate its value proposition and vision will be rewarded in the long run.

No posts to display

3 THOUGHTS ON Bitcoin looks set to close the year up around 158% against its price of around $16,500 12 months ago

  1. My experience of recovering my stolen Bitcoin has taught me valuable lessons about resilience, determination, and the importance of seeking professional help. Wizard Web Recovery was the Bitcoin expert I sought when I needed my Bitcoin back. With the expert now armed with all the information, it was time to start the pursuit. It felt like we were on a thrilling virtual treasure hunt, chasing after my stolen Bitcoin through the darkest corners of the internet. Using their expertise and sophisticated tools, the expert-guided me through the process of tracking the stolen funds. It was a delicate dance between technology and intuition, as we followed the digital footprints left by the thieves. Each step brought us closer to the truth, and my anticipation grew with every discovery. Throughout this journey, I couldn’t help but marvel at the expertise of the person guiding me. It was like they had a sixth sense of navigating the online underworld. Their knowledge and skill were the secret weapons in our relentless pursuit, and I was grateful to have them by my side. While the recovery of my stolen Bitcoin was a cause for celebration, it also served as a wake-up call. I realized the importance of enhancing my security measures to prevent future attacks. I couldn’t rely solely on the expertise of others to protect my assets; I had to take proactive steps myself. I started by educating myself about online scams and staying updated on the latest cybersecurity practices. I implemented two-factor authentication, strengthened my passwords, and became more cautious about the information I shared online. It was like putting on digital armor, ready to defend myself against any potential threats.This experience also made me realize the need to share my story and empower others. I wanted to raise awareness about online scams and the importance of vigilance in the digital world. By spreading knowledge and encouraging others to take their online security seriously, I hoped to prevent others from falling victim to the same fate. By sharing my story, I hope to inspire others to take action and protect themselves in the vast labyrinth of the internet. Together, we can build a community of informed and empowered individuals who refuse to be victims of cybercrime. Do reach Wizard web recovery via email: wizard web recovery @ programmer (dot) net, additionally, you can also communicate with them directly on the webpage at wizard web recovery (dot) net

  2. Recovering Scammed Bitcoin, Ethereum, USDT. When it comes to recovering lost or inaccessible Bitcoin, BENRECOVER20 ? gmail COM is like the internet equivalent of Harry Potter—it always comes through for the good guys. It’s a strong tool made to assist users in getting back access to their digital treasure troves as quickly and easily as feasible. Losing access to your Bitcoin comes with a whole slew of risks and challenges. Apart from the obvious financial loss, there’s the frustration of knowing you can’t tap into your digital fortune when you could really use it. Plus, there are always opportunistic hackers lurking around, waiting for a chance to pounce on an inaccessible Bitcoin wallet. It’s like leaving the back door wide open for digital thieves. With all the tools required to recover your lost or unreachable Bitcoin, BENRECOVER20 ? gmail COM is like having your very own digital knight in dazzling armor contact him if you want your crypto back

  3. if you’ve lost your funds to any type of scam it is now possible to get your funds back all you need to do is hire a professional to get the job done. i was able to recover my 0.739BTC I lost to an investment scam, thanks to the professional i hired you can reach her at “””Lindabolter3 (AT) G (M)(A)(I)L) COME””. she is regarded as one of the best recovery expert in the market. the best part is as a Guaranty that he get the Job done, she does not take Charges Until after the job is Done.

Post Comment

Please enter your comment!
Please enter your name here