In the past year, Bitcoin, the world’s most famous cryptocurrency, experienced a real rollercoaster of emotions. From moments of crisis to unexpected plot twists, the cryptocurrency market kept surprising. Especially after the explosion of the scandal related to FTX, which shook the market, many wondered if Bitcoin had a chance to bounce back. However, despite negative forecasts, this cryptocurrency not only survived but also gained in value. What contributed to its stability and what will the future bring?
The beginning of the year was not promising for Bitcoin. The scandal related to FTX and the banking crisis affecting technology-friendly and cryptocurrency institutions, such as Silicon Valley Bank and Silvergate, caused concern. Additionally, Binance, the world’s largest crypto exchange, faced legal accusations from the U.S. Securities and Exchange Commission (SEC) and the Department of Justice.
All these events, although they did not directly hit Bitcoin, could have a serious impact on the entire cryptocurrency industry. Despite this, Bitcoin not only survived but also increased in value, reaching a price of over $41,000, which is a 148% increase compared to the price from a year ago.
One of the key factors that could have contributed to the increased interest in Bitcoin was the enthusiasm generated by the Bitcoin ETF (Exchange-Traded Fund). After years of rejections from the SEC, BlackRock, the world’s largest asset manager, applied for the launch of the iShares Bitcoin Trust. This event further fueled the rise in Bitcoin’s price.
At the same time, Bitcoin began to be seen as “digital gold”, attracting investors looking for a safe haven in uncertain economic times. Such a comparison to gold is not new, but this year it gained significance, especially when the cryptocurrency began to show a correlation with this precious metal.
Another important phenomenon was the emergence of Ordinals – an innovation on the Bitcoin blockchain that allows for the recording of custom data, similar to NFTs. Although Ordinals stirred controversy and led to network congestion, which in turn increased transaction costs, they nevertheless gained popularity and contributed to the development of many projects.
New events are on the horizon that could significantly influence the future of Bitcoin. First and foremost, the approval of a Bitcoin ETF in January is expected, which could attract new capital to the market. Additionally, the next “halving”, which is a reduction in the rewards for cryptocurrency miners, is approaching, historically signaling an increase in Bitcoin’s value.
In the past year, despite many challenges, Bitcoin not only survived but also gained in value. The growing interest of institutions, the development of new financial products, and the increasing role of Bitcoin as “digital gold” suggest that this cryptocurrency will continue to play a key role in the world of finance. However, the future, as always in the world of cryptocurrencies, remains full of unknowns.
