Bitcoin has done very well this year, blockchain analytics firm Glassnode noted in its recent Weekly Report No. 51.
Glassnode has published a new weekly report that delves into the progress and challenges that Bitcoin and the crypto market have faced in 2023. Titled “The Week On-chain: 2023 Year in Review”, the report highlights the significant recovery in price and market share that Bitcoin has experienced, in anticipation of the possible approval and launch of a spot exchange-traded fund or ETF in the United States.
According to the firm, the price of Bitcoin has recovered more than 170% In the last 12 months, it has corrected less than 20% and has recorded significant capital inflows into its investment products.
Glassnode also highlighted that the number of bitcoins held by long-term holders almost hit a new all-time high and that much of Cryptocurrencies currently in circulation are in profits.
“2023 has been a banner year for digital assets, with Bitcoin’s market cap increasing by a high of +172%,” Glassnode noted.
Although the market-leading cryptocurrency has remained far from its all-time high of $68.780, its price has seen a strong boost this year, thanks to the promising progress made to date by asset managers with the Securities and Exchange Commission (SEC). The US securities regulator reportedly intends to approve the first Bitcoin-based spot ETFs in early January 2024, which would undoubtedly open the doors to a promising future, both for the development of Bitcoin and for the crypto market in general.
2023, a solid year for Bitcoin and cryptoassets
In its recent report, Glassnode highlighted that 2023 has been, overall, A good year for the cryptocurrency marketNot only has Bitcoin managed to recover from the bearish events seen in 2022, which affected its price, but also most cryptocurrencies and digital assets listed on the market.
In relation to this, the crypto analysis firm indicated that the broader segments of altcoins, such as Ethereum, Cardano, Solana, among others, had experienced a growth of +90% in their market capitalizations this 2023.
Source: Glassnode
Bitcoin's market dominance has been growing considerably as the cryptocurrency recovers from last year's prolonged bear market.
Altcoins have also seen significant growth, although in the case of Ethereum, which is the second most capitalized cryptocurrency on the market, the increase began to become noticeable in the fourth quarter, despite the success that the network developers had with the The long-awaited Shanghai update is now available, in April, and the constant expansion of its Layer 2 ecosystem, with solutions such as Polygon, Optimism, Arbitrum and zkSync always innovating.
Breaking traditional behaviors
This year, Glassnode also observed a significant shift in the behavior of crypto assets in previous years.
The firm noted that, historically, bullish rallies are usually accompanied by a price correction of at least 25% in relation to the local highs of crypto assets. However, this 2023, the cryptocurrency market has had “shallow depth of all the pullbacks and price corrections,” a characteristic that Glassnode highlighted as a notable change in behavior, suggesting a healthier market.
Source: Glassnode
Market anticipation of a possible SEC approval of the Bitcoin ETF brought a Renewed interest in cryptocurrency and digital assets In general, according to Glassnode, the possible approval of this regulated investment vehicle and the proximity of the next Bitcoin halving are setting the stage for a more than exciting new year.
In a recent post on X (formerly Twitter), Santiment reported that the number of Bitcoin wallet addresses with a balance greater than 0 BTC has grown by 1,8% over the past 10 days, suggesting that more investors are accumulating Bitcoin.
Continue reading: Solana becomes the 4th most capitalized cryptocurrency on the market
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