- Bitcoin surged 172% in 2023, outperforming gold and equities, signaling resilience and strong institutional interest.
- Long-term holders secure 76% of Bitcoin, showcasing conviction for a potential future rally.
- The bull run features shallow corrections, attracting more players, while institutional interest grows in derivatives.
The last edition of Glassnode’s on-chain data has been published and it’s about the year 2023 in review. Bitcoin has roared back in 2023, delivering a 172% price surge that surpasses traditional assets like gold and equities. A deep dive into the on-chain data reveals investors speculating of even more gains to come.
The report stated that October proved to be the turning point. After months of cautious recovery, Bitcoin finally broke through the psychological barrier of $30,000. This wasn’t just a price tick; it was a bullish signal. On-chain metrics, like dominoes, started toppling in succession, each one painting a picture of a market in transition.
Long-Term Holders have tightened their grip on their coins, with over 76% of Bitcoin supply now safely tucked away in their digital wallets. These investors are in it for the long haul, creating a tightly held supply that could fuel future rallies.
Most coins are now basking in “in-profit” territory, a stark contrast to the underwater depths of 2022. This newfound profitability doesn’t just feel good; it also suggests that investors might be less likely to dump their coins at the first sign of a dip.
And speaking of dips, this bull run has been remarkably shallow. Unlike previous cycles, where 20%-plus corrections were the norm, pullbacks this year have barely cracked the 20% mark. This newfound stability could attract even more players, especially those still wary of the crypto rollercoaster.
But it’s not just individual investors taking notice. The world of institutional finance is quietly making its way into Bitcoin, evident in the booming derivatives market. Options contracts, once a niche playground, have now grown to match futures in open interest, signaling the arrival of sophisticated trading strategies and potentially deeper liquidity.
Even stablecoins, the lifeblood of crypto trading, are back in the game. After a period of decline, their supply is finally expanding again, a hint that investors are once more comfortable pouring money into the digital asset ecosystem.
Bitcoin, ever the volatile beast, experienced a recent pullback, reminding everyone that the ride won’t be entirely smooth. But the on-chain data paints a compelling picture: the fundamentals are strong, investor confidence is soaring, and the stage is set for a potentially exciting 2024.
With a US-based Bitcoin ETF on the horizon and the next Bitcoin halving approaching, the future looks bright for the king of crypto. Additionally, renowned crypto analyst Crypto Rover unveiled that the investment giant Blackrock has taken a pivotal step toward approving its iShares Bitcoin Trust. The company submitted an amendment to the form S-1 on December 18, 2023, marking a crucial move in pursuing a spot Bitcoin ETF filing with the U.S. Securities and Exchange Commission (SEC).
