The year 2023 has proven to be a golden year for cryptocurrency investors, despite various ups and downs in the financial landscape. Investors have experienced substantial returns this year, and now they are anticipating even better returns in the coming year.
For cryptocurrency investors, 2023 has been an outstanding year, with significant returns. According to CNN’s report, the primary cryptocurrency, Bitcoin, has witnessed a 160% increase in value this year. This impressive return has come at a time when the cryptocurrency space has faced its 14th year filled with scandals, bankruptcy, fraud, and regulatory controversies.
Reasons Behind the Lucrative Returns for Crypto Investors Similar to other segments of the financial market, improvements in inflation, a growing economy, and an increase in the Federal Reserve’s interest rates have contributed to a positive economic outlook globally. This has benefited cryptocurrency assets. Additionally, two high-profile legal cases have favored the industry. Furthermore, the long-awaited approval for a legal investment product is expected in January, which could attract new investors.
Anticipating Significant Changes in the Coming Year In 2024, a major development is expected in the cryptocurrency market with the potential introduction of the first spot Bitcoin exchange-traded fund (ETF) in the American market. In simple terms, a spot Bitcoin ETF allows investors to track the price of digital currency without actually owning Bitcoin. This feature makes it appealing to mainstream investors.
Concerns Looming in the Crypto Market According to CNN’s report, the first and foremost consideration is providing a relatively secure way for everyday investors who are cautious about cryptocurrencies to dip their toes into the volatile market. ETFs trade on traditional stock exchanges, meaning investors can access them through their established brokerage accounts rather than creating new accounts in the crypto-versus through their existing brokerage accounts rather than setting up new accounts on crypto exchanges. Additionally, the possibility of regulatory scrutiny adds another layer of security and transparency to the investment.
