Bitcoin defies its doubters in 2023
$Bitcoin(BTC.CC$ If 2022 was the year that "broke bitcoin", 2023 has been the year of trauma recovery.
The king of cryptocurrencies has leapt 164% since Jan. 1 and is trading above $40,000. It has outpaced traditional assets, including gold which has risen 10% and the $S&P 500 Index(.SPX.US$ which has gained 20%.
BITCOIN IN 2024
Most of bitcoin's 55% run in the fourth-quarter has been attributed to bets that a spot bitcoin ETF will be approved in the U.S. and pull in money from retail and institutional investors alike on the ease of gaining exposure to the digital asset on a regulated stock exchange.
Asset management giants like BlackRock and Fidelity are among the 13 companies that have submitted applications to the U.S. Securities and Exchange Commission for the multi-billion dollar product.
Such a fund is expected to pull in as much as $3 billion from investors in the first few days of trading and billions more thereafter.
Not everyone is as bullish though.
J.P.Morgan expects the crypto market recovery to continue through the expected approval in early 2024, however, remains skeptical of the magnitude of success in adoption that broader market is pricing in.
JPM expects the bitcoin ETFs to pull in assets in the low or low to mid-single digit percentage range of the $1.7 trillion crypto market compared with some optimistic outlooks of 10%.
If adoption falls short of investor expectations of around 10%, crypto markets could reverse their recent gains, it said.
To some market watchers, though, it looks like the current bitcoin recovery is still in early stages.
The net dollar-denominated realized profit locked in by bitcoin investors has reached $324 million per day, which remains an order of magnitude below the peaks experienced during the later stages of the 2021 bull market, which eclipsed $3 billion a day, according to analytics platform Glassnode.
This suggests bitcoin's current performance remains very much within the bounds of an early rather than a late-stage bull market, Glassnode said.
Most of bitcoin's 55% run in the fourth-quarter has been attributed to bets that a spot bitcoin ETF will be approved in the U.S. and pull in money from retail and institutional investors alike on the ease of gaining exposure to the digital asset on a regulated stock exchange.
Asset management giants like BlackRock and Fidelity are among the 13 companies that have submitted applications to the U.S. Securities and Exchange Commission for the multi-billion dollar product.
Such a fund is expected to pull in as much as $3 billion from investors in the first few days of trading and billions more thereafter.
Not everyone is as bullish though.
J.P.Morgan expects the crypto market recovery to continue through the expected approval in early 2024, however, remains skeptical of the magnitude of success in adoption that broader market is pricing in.
JPM expects the bitcoin ETFs to pull in assets in the low or low to mid-single digit percentage range of the $1.7 trillion crypto market compared with some optimistic outlooks of 10%.
If adoption falls short of investor expectations of around 10%, crypto markets could reverse their recent gains, it said.
To some market watchers, though, it looks like the current bitcoin recovery is still in early stages.
The net dollar-denominated realized profit locked in by bitcoin investors has reached $324 million per day, which remains an order of magnitude below the peaks experienced during the later stages of the 2021 bull market, which eclipsed $3 billion a day, according to analytics platform Glassnode.
This suggests bitcoin's current performance remains very much within the bounds of an early rather than a late-stage bull market, Glassnode said.
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Maxxdog : Why do you think Bitcoin is being pumped? It's because they use it for their liquidity needs in the stock market.