Cryptocurrency traders are entering the new year on a positive note, with Bitcoin expected to end 2023 up about 150% and Ether up more than 80%.
Here are some of the major headlines and storylines that moved the market this year, and some to watch as we head into 2024.
Bitcoin NFTs are here
Ordinal protocol developer Casey Rodarmor launched Bitcoin Ordinals in January 2023 to introduce non-fungible tokens to the Bitcoin blockchain.
CryptoSlam data shows that Ordinal's sales peaked in May 2023 with $452 million in transactions, before dropping to around $3 million by August.
As demand waxed and waned, Ordinals made transactions on the network more expensive and took longer to settle. According to a study by Blockworks, average transaction fees have increased more than 25 times over the past year. Meanwhile, Bitcoin's menpool continues to face unprecedented levels of congestion.
While fans remain convinced that Ordinals shows that Bitcoin still has use cases to discover, skeptics question whether Ordinals is efficient enough. Ordinals claims it can “spam” the blockchain.
Congress was busy — in a way.
Many bills were introduced to the floor this year, but none received a unanimous vote.
Still, some of the language in the pending bill has the industry concerned about the future of crypto regulation in the United States.
Many crypto enthusiasts have found a bipartisan bill focused on cryptocurrencies and money laundering co-sponsored by Massachusetts Democratic Sen. Elizabeth Warren.
The bill would require digital asset wallet providers, miners, validators and others to comply with anti-money laundering rules under the Bank Secrecy Act. Critics say many of these actors are unable to meet these requirements and requiring them to do so would stifle innovation in the United States.
This month, five new senators, including three on the Banking Committee, signed on as co-sponsors of the bill, which could be ready for a floor vote when Congress reconvenes in 2024.
The Senate is scheduled to reconvene on January 8, 2024, and the House of Representatives is scheduled to meet on January 9. The House of Representatives is currently scheduled to adjourn the week of January 22nd. Both the House and Senate must decide on a fiscal year 2024 spending package by February 2, 2024, when they are tasked with giving the green light.
SBF was found guilty
FTX founder Sam Bankman Fried was found guilty on seven federal counts of fraud and conspiracy in November, one year after CoinDesk published a leaked version of Alameda's balance sheet. received. Bankman Fried is scheduled to be sentenced in March 2024.
FTX's home, FTT, rose 365% from the start of Bankman Fried's trial to mid-December, driven by optimism that the bankrupt exchange could be relaunched in the new year. It seems that.
Many crypto enthusiasts praised Bankman-Fried's conviction, saying that removing bad actors and wrongdoers from the industry opens the door to innovation and effective regulation.
But policy advocates say the effects of the FTX collapse are still being felt on Capitol Hill, with some lawmakers citing the situation as an example of why tighter guardrails are needed.
Bitcoin ETF Mania
With increased interest from institutional investors and a promising court ruling, investors are hopeful that a Bitcoin spot ETF will hit the market soon. Analysts say this optimism is enough to move the market, but it remains to be seen what will happen to Bitcoin's price if the product is approved.
Asset management firm BlackRock filed for a Spot Bitcoin exchange-traded fund in June. Since then, BlackRock has met five times with the U.S. Securities and Exchange Commission to discuss its planned products.
Grayscale continued its battle with the SEC to convert its Bitcoin Trust product into an ETF. Crypto asset managers scored a major legal victory in August when the D.C. Court of Appeals effectively ruled that the SEC could not reject a Spot Bitcoin ETF based on reasons it had previously provided. Ta.
Also this year, Volatility Shares launched the first leveraged Bitcoin futures ETF in the US, and the SEC greenlit an Ether futures fund – two years after the first BTC futures ETF hit the market. .
Fake news still moves markets
Bitcoin hovered around $26,000 for much of the month, but briefly topped $30,000 in mid-October following false rumors that a spot ETF product had been approved in the United States.
The rumor was spread through crypto media outlet Cointelegraph's X account, causing a $2,000 price spike and fueling volatility across the sector, with over $100 million in liquidations per hour. The post remained up for nearly an hour before being deleted.
Other ETF analysts and media outlets, including Blockworks, quickly confirmed the report was false.
Immediately after this post, Bitcoin skyrocketed across trading venues. The Binance BTC/USDT market, which accounts for 8% of BTC's 24-hour trading volume, opened at $27,883 at 9 a.m. ET and peaked at $30,000, a 7% candlestick, in about 30 minutes.
Don't miss the next big story – join our free daily newsletter.
