In ARK Invest’s latest Big Ideas 2024 report, Bitcoin takes the spotlight for its outstanding performance in 2023. The cryptocurrency saw a staggering 155% surge, propelling its market cap to an impressive $827 billion. Despite facing significant challenges in the past, Bitcoin has proven resilient, consistently delivering positive returns over various timeframes.
Let’s get into the specifics of the report.
Bitcoin’s Resurgence from Past Horrors
What makes this surge even more remarkable is the performance of Bitcoin’s investment portfolios, with its optimal allocation surging to an unprecedented 19.4%, a remarkable leap from a mere 0.5% recorded in 2015 says Cathie Wood proof of long-term growth.
Big Ideas 2024 from ARK suggests Bitcoin’s price climbs above its on-chain market mean for the first time in four years. This key indicator signals a future bull market. ARK Invest promotes this on-chain statistic as a credible indicator of the Bitcoin market risk-on and risk-off phases.
The year 2023 also brought resolutions to crises that unfolded in 2022, notably the collapse of the algorithmic stablecoin UST and its sister cryptocurrency LUNA. Founder Do Kwon faced indictments, and Terraform Labs, the startup behind the tokens, confronted SEC civil charges related to alleged securities fraud.
2023 A Year of Resolution
In 2023, several crypto companies resolved crises. High-profile hedge firm Three Arrows Capital (3AC) was banned from Singapore capital markets after a liquidity problem and had assets frozen in the British Virgin Islands.
Celsius Network, a crypto lending company, entered bankruptcy after freezing withdrawals but got an approved restructuring plan. We saw FTX Collapse. In 2023, legal issues forced founder Sam Bankman-Fried to sell FTX’s assets in bankruptcy court. In 2022, BlockFi and Genesis also struggled, and their liquidation and settlement plans were authorized in 2023.
Interestingly, during a regional banking collapse in early 2023, Bitcoin was a safe haven, appreciating by over 40%. Whereas, the introduction of Bitcoin Inscriptions allowed users to add data directly to the blockchain, expanding Bitcoin’s use beyond transactions as per the reports.
Looking ahead to 2024
Now the year 2024 emerges with high hopes and Cathie Wood led Ark says this will be a great year for Bitcoin. Bitcoin is poised for a positive year, driven by significant catalysts. The upcoming halving in April will reduce Bitcoin’s inflation rate, making it more valuable.
The launch of spot Bitcoin ETFs in January has simplified and provided a safe investment for mass adoption. Similarly, Institutional acceptance is on the rise, with influential figures like Larry Fink making some big moves in Bitcoin. Regulatory developments, including potential US legislation and Europe’s MiCA regulation, are expected to bring more transparency to the global crypto landscape.
Overall, 2024 holds promising prospects for Bitcoin. What do you think?