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Bitcoin and cryptocurrencies have seen a resurgence in 2023 after a slow period, marked by scandals and lawsuits. This year, the industry has experienced growth and positive sentiment, with adoption on the rise. The approval of spot bitcoin exchange-traded funds in January and spot ethereum ETFs in May have been significant milestones for the crypto industry. These developments have sparked interest among investors and made access to crypto assets easier.
According to a recent Morning Consult survey, cryptocurrency ownership has remained consistent, but there is an increase in the number of people considering purchasing cryptocurrency. The global crypto market cap currently stands at $2.14 trillion, with bitcoin trading at $60,896. Despite recent volatility, bitcoin has seen a 107% increase in value over the past year.
Experts believe that bitcoin and crypto assets remain potentially good investments for several reasons. The approval of ETFs has legitimized the industry and made it more accessible to investors. Edward Corona, a trader and strategist, highlighted bitcoin’s scarcity and decentralized nature as factors that make it a solid investment. The ETFs provide an easier way for everyday investors to gain exposure to bitcoin without directly purchasing the digital currency.
Brian Dixon, CEO of Off The Chain Capital, noted that the ETFs have created a massive onramp for investors to enter the crypto space. The ease of access to crypto assets through these investment products has led to a recovery in assets under management, which now stands at $85 billion.
Dixon also pointed out that the shifting macroeconomic outlook has prompted more investors to diversify their portfolios with crypto assets. The growth potential and diversification benefits of crypto make it an attractive option for investors looking to expand their investment portfolios.
Markus Levin, co-founder of XYO Network, explained that the rise in crypto prices is driven by growing adoption. As more people adopt and use the technology, the next market downturns are expected to be less severe. Some experts predict a post-election rally in crypto prices, with the possibility of bitcoin reaching over $100,000 after the presidential election.
In conclusion, the resurgence of bitcoin and cryptocurrencies in 2023 has been fueled by institutional acceptance, easier access for investors, diversification benefits, and growing adoption. These factors have contributed to the positive sentiment surrounding crypto assets and their potential as investments. As the industry continues to evolve, it will be interesting to see how these trends shape the future of cryptocurrencies.
