Cryptocurrencies experienced a difficult year during 2022, which shocked cryptocurrency enthusiasts with a series of unexpected events such as the fall of the “Terra Luna” currency, the collapse of the cryptocurrency exchange “FTX”, not to mention the challenging macroeconomic conditions, and the admission of guilt by the co-founder and CEO of Binance.
Two years ago, Bitcoin, the largest virtual currency in the world, jumped to an all-time high of 69,000 dollars, but the story was completely different in the following twelve months and 2022 was disastrous for the cryptocurrency sector as Bitcoin lost almost 65% of its market value.
Bitcoin started 2023 slightly higher than USD 16,000, but began to rise again to the surprise of many investors who thought that the cryptocurrency market was over until at the beginning of this month it reached an all-time high in a year at USD 45,000.
The year 2023 has become a turning point for cryptocurrencies after expectations that he will write the last lines for that industry. Paradoxically, the collapse of traditional investments strengthens confidence in bitcoin, including the collapse of the “Silicon Valley” Bank, as investors look for greater transparency after the apparent failure of the traditional bank framework, bitcoin has become more attractive as an alternative investment.
Bitcoin’s jump from USD 16,000 to USD 45,000 in one year represents a 180% increase and underscores its resilience even in the face of enormous global obstacles.
The king of digital currencies surpassed traditional assets during 2023, including gold, which rose by 10% and the “S & P 500” index, which jumped by 20%.
Moreover, the share of bitcoin in the total cryptocurrency market has increased, from 38% to above 50%, according to the data of “coinjecco”.
The capital of the crypto market rose to 1.7 trillion dollars from 871 billion dollars by the end of 2022, with the “ether” currency jumping by 95%.
According to a report by the “Reuters” agency, the majority of bitcoin’s gains during the year came from the proposal to establish a bitcoin digital currency ETF in the United States, and hopes of easing monetary policy, which again ignited risk appetite among investors.
At the same time, stablecoins – cryptocurrencies whose value is tied to real world assets such as the dollar-also jumped. The market capitalization of Tether cryptocurrency, the largest stable digital currency on the market, has risen to an all-time high of over 90 billion dollars.
