Cryptocurrency: The year 2023 has been a great year for cryptocurrency investors. Investors have got bumper returns from cryptocurrencies this year. According to a report, Bitcoin, the leading crypto asset, has increased by 160 percent this year, which means investors got huge returns, that too when the 14th year of crypto’s existence was full of scams, bankruptcies, frauds, and regulatory disputes.
This is why crypto(Cryptocurrency) investors got bumper returns
Like the rest of the financial markets, low inflation, a growing economy, and the Fed’s pause on interest rate hikes improved the world’s economic picture, giving crypto assets a boost. Additionally, two high-profile court cases came in favor of the industry. This has also been beneficial for crypto. And long-awaited approval for a legal investment product is expected in January, potentially bringing a flood of new investors.
Big changes expected next year
The main event for crypto in 2024 could come next month, when US regulators are expected to greenlight applications for the first spot Bitcoin ETF, or exchange-traded fund, in the US market. Simply put, spot Bitcoin ETFs allow investors to track the price of Bitcoin without actually owning the digital currency. This is attractive to mainstream investors for a few reasons.
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Big turmoil scares the crypto market
According to the report, first of all, it gives everyday investors who are wary of crypto a relatively safe way to get their foot in the volatile market. ETFs also trade on traditional stock exchanges, meaning investors can access them through their tried-and-true brokerage rather than creating a new account in the crypto-verse. And, of course, the possibility of regulatory oversight adds another layer of security and transparency.
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