TL; DR
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What you missed between now and December 22 last year.
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The 2023 P&L for three major cryptocurrencies.
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Some predictions about where we are going.
Full story
We’re back baaaaby!
I hope you all enjoyed your respective breaks.
We spent our vacations seeking moments of peace and quiet between our feverish (borderline obsessive) refreshment CoinMarketCaps home page – cause, ICYMI:
Santa Claus came by this year for crypto holders!
That means there’s a lot to talk about – and with that in mind…
Instead of our usual three-article format, today we’re offering a quick recap of all the price action you missed over the holidays, the 2023 profit/loss report, and what’s ahead in 2024.
Starting with price action.
Here’s what you missed between now and December 22 last year:
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Bitcoin went from $43.3k, peaked at $45.9k and is at $45.3k at the time of writing.
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Ethereum went from $2.24k, peaked at $2.44k and is at $2.36k at the time of writing.
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Solana went from $93.1, peaked at $125.1 and is at $110 at the time of writing.
That’s neat and all, but it will be Real exciting when you look back at the profit/loss report of each coin/token, over an annual time frame…
Here is the 2023 P&L for each of the above cryptocurrencies:
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Bitcoin pulled a 2.25x (from a low of $19.6k to a high of $44.1k)
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Ethereum 1.78x (from a low of $1.37k to a high of $2.44k)
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Solana hit a *wait for it* 9.35x (from a low of $13.37 to a high of $125.1)
Even Ethereum’s “slow” 78% growth in 2023 is impressive, considering most of the financial world was convinced we would see a global recession in ’23.
Right. So there we went. Now – where do we go?
We would define overall market sentiment as ‘bullish in the short term, bearish in the medium term, bullish in the long term’.
A ‘bearish sandwich’, if you will.
Here’s how that’s calculated:
Short-term…
A spot Bitcoin ETF is expected to be approved in the US between now and January 10.
An ETF would allow BTC to be traded through the stock market and attract all kinds of new investment dollars (which would increase the demand for Bitcoin while decreasing its supply).
Here’s our patented ‘Low IQ Math’ on this:
ETF = probably good for the price of BTC.
In the medium term…
Most analysts we follow still expect a recession to occur at some point (even the optimistic ones). If/when that happens, expect a broad crypto sell-off.
Our low IQ math on that? Recession = bad.
In the long-term…
Bitcoin tends to lead the crypto market; when BTC rises, the rest of the market often follows suit.
And this year, a spicy new ‘price up’ cocktail is being brewed for Bitcoin.
(One that could significantly increase Bitcoin’s scarcity and overall demand).
The recipe goes like this:
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April will see Bitcoin’s halving, which means the amount of new BTC entering the market each day will be halved (reducing supply).
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Hopefully there will be several US-based spot BTC ETFs by then.
This will allow institutional asset managers, family offices and pension funds that invest only in US equities (also called equities) to allocate a portion of their portfolios to Bitcoin.
(Increasing demand while supply decreases).
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The Federal Reserve plans to cut interest rates in 2024, meaning everyone’s loan and credit payments will cost less each month, giving people more disposable income, some of which should flow into Bitcoin.
(Again: demand increases while supply decreases).
Here’s our Low IQ Math on that cocktail recipe:
Good news + bad news + good news = net good news for BTC (and the rest of the crypto market).
Okay, those are the highlights!
Tomorrow we will be back with our regular programming of 3 articles.