How Bitcoin Will Perform in 2023 and the Difference Between Web 1.0, 2.0, 3.0 and 4.0

Bitcoin Performance Outperforming Traditional Assets

Data provider Kaiko Research predicts that Bitcoin (BTC) is set to end the year with a higher return than all major traditional assets. In spite of the difficult macroeconomic circumstances and challenges in the crypto industry, the cryptocurrency has increased by more than 160% in 2023. NVIDIA Corp (NVDA) is the only company to have gained more than Bitcoin, with its share prices rising 241% year-to-date.

According to Kaiko’s analysis, BTC has gone through three stages in the course of the year. Between March and October, it usually traded between $25,000 and $30,000, and then dropped to its lowest level in years in mid-2023. However, after BlackRock submitted an application for a Bitcoin exchange-traded fund (ETF) on June 15, the market price of BTC rose above $40,000.

The US Securities and Exchange Commission (SEC) is due to make a final decision in early January on whether to allow spot trading of Bitcoin via ETFs. A number of well-known Wall Street companies, including Fidelity, WisdomTree, ARK, 21Shares and VanEck, are in line for approval. If the investment vehicle is approved, it will likely have a positive effect on Bitcoin prices and liquidity. BlackRock, for example, is planning to invest $10 million in its product.

Kaiko’s research also indicates a reversal in the correlation between Bitcoin and the Nasdaq 100 stock market index. The cryptocurrency has typically been seen as a form of digital gold, a hedge against inflation. However, its value is mostly determined by macroeconomic factors, the US dollar, and stock market trends.

This trend started to reverse in January, with a steady decline in BTC prices until July, followed by a reversal when it reached $30k. The most dramatic change came recently, as BTC broke the $40k barrier. It remains to be seen if this decorrelation will continue, as the Nasdaq 100 and other equity indexes reach new all-time highs.