BitMEX: Reviewing the Top 10 Cryptocurrency Events of 2023 and Looking Forward to the Bull Market in 2024.

23-12-25 11:25

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The Top 10 Crypto Moments That Made 2023

Author: BitMEX

Translated by: Sharon, BlockBeats

Editor's Note:

BitMEX, one of the world's largest cryptocurrency derivatives exchanges, recently released "The Top 10 Crypto Moments That Made 2023". The report believes that 2023 is a year suitable for construction and preparation for the bull market, and reviews the major events of 2023, including the traditional banking crisis bringing dawn to the cryptocurrency industry, numerous traditional financial giants applying for Bitcoin spot ETFs, the continued popularity of Bitcoin Ordinal, the back-and-forth struggle between the SEC and multiple exchanges, the final verdict of SBF, CZ's resignation, and the rise of Solana's Meme coins.

In addition, BitMEX also looked ahead to the cryptocurrency industry in 2024, pointing out that traditional finance and emerging finance are accelerating their integration, and 2024 is expected to be a key year for the industry's evolution. BlockBeats has translated the original article as follows:

This year, the cryptocurrency industry has experienced a unique year. As 2023 draws to a close, we look back at the top ten events that happened in 2023 and how they have shaped our industry.

TL;DR：

1. The market entered a bear market in early 2023, while dealing with the aftermath of FTX and a challenging macroeconomic backdrop;

2. The banking crisis that occurred in March, which saw the collapse of Signature Bank, Silicon Valley Bank, Silvergate, and Credit Suisse, brought a glimmer of hope to the cryptocurrency industry's winter.

3. With Blackrock, Fidelity, and other traditional financial giants applying for Bitcoin spot ETFs, the price of Bitcoin is accelerating its recovery.

4. The market is returning to Bitcoin, and Ordinals have reached their highest historical level, driving on-chain transactions of Bitcoin to a new high.

5. After disputes with Kraken, Coinbase, and Ripple, the US SEC is facing increased pressure to clarify cryptocurrency regulations. Subsequently, more than 40 countries announced their regulatory frameworks.

6. Sam Bankman-Fried (SBF) has been convicted of seven charges and faces up to 115 years in prison;

7. Binance pleaded guilty and paid a fine of $4.3 billion to the US Department of Justice. Zhao Changpeng resigned from his position as CEO.

8. The Solana ecosystem has surpassed Ethereum through the launch of new projects and improvements, resulting in a 500% increase in the value of SOL.

9. Meme coins like PEPE, SHIB, DOGE, and BONK are making a comeback;

10. IEO listings have become popular before their launch, and BitMEX is at the forefront.

Traditional Finance Tragedy

2022 Ripple Effects

This year, macroeconomics and inflation undoubtedly dominated all conversations - the Federal Reserve raised interest rates to the highest level in decades, central banks are implementing further monetary tightening, and the economy is struggling to cope with the impact of the COVID-19 pandemic.

As far as the background is concerned, the Federal Reserve implemented the fastest rate hike in history, with seven rate hikes in 2022 alone and an additional four in 2023.

Banking Crisis

Challenging macroeconomic conditions mean that customers have a lower risk appetite, and government bonds become the preferred investment category. Due to inflation, banks face pressure to repay long-term debt interest at much higher capital costs - not long after, the first high-risk bank quickly collapsed.

Customers began to panic and withdraw their funds, leading to a run on various banks. Multiple banking institutions, including Silvergate, Silicon Valley Bank, Signature Bank, and Credit Suisse, collapsed.

Therefore, the government plans to print money through a bank deposit rescue plan. The total amount of currency supply has not stopped growing, and the demand for non-inflationary assets such as gold and Bitcoin has become apparent. The failure of long-term centralized entities means an increase in confidence in decentralized currency systems - people are beginning to see cryptocurrencies as an alternative.

The interest rate hike continued until June, and J.Powell played the role of a disguised strongman. Until August, inflation began to stabilize. The latest December Fed meeting confirmed once again that interest rates will remain stable or decrease next year, which should be positive for the cryptocurrency market in 2024.

Build Bitcoin

At the beginning of 2023, the price of Bitcoin was hovering around $16,000 and was likely affected by some negative impact from FTX. As time passed, this narrative quickly changed. The main reason was the banking crisis, followed by news of Bitcoin spot ETFs and the development of network use cases.

Appearance of Bitcoin Spot ETF

"We do believe that if we can tokenize more assets and securities - which is the purpose of Bitcoin - it could fundamentally change finance." - Larry Fink, CEO of Blackrock.

This year, traditional financial giants such as Blackrock have shown confidence in digital assets, which has become increasingly evident in the second half of the year. This was evident in June when Blackrock applied for a bitcoin spot ETF, followed closely by companies such as Fidelity and Grayscale.