While skeptics clutched their pearls and critics ate their words, Bitcoin absolutely demolished previous records by rocketing to an eye-watering $94,000. The original cryptocurrency didn’t just break records – it shattered them, soaring past silver to become the world’s second-largest store of value asset after gold.
With market dominance hitting 63%, Bitcoin made it crystal clear who’s boss in the crypto world. Early data suggests this rally mirrors previous patterns where low seller energy preceded major upward price movements. The stunning surge aligns with total investor gains of $37.6 billion in 2023.
Bitcoin’s iron grip on crypto markets proves yet again that altcoins are just playing in its sandbox.
The stunning rally wasn’t just about big numbers. Bitcoin’s volatility dropped to historic lows, something that precisely zero people predicted during previous bull runs. Realized volatility plunged below 50%, a rare event that’s happened in only 5% of Bitcoin’s entire history. So much for those “digital casino” comments from the peanut gallery. Experts anticipate this phase could extend for market mania phase around 7.8 months before showing signs of cooling.
Institutional money finally showed up to the party, fashionably late as usual. The SEC’s approval of spot Bitcoin ETFs opened the floodgates for Wall Street suits who’d been itching to get in on the action. Traditional investors who wouldn’t touch crypto with a ten-foot pole suddenly couldn’t wait to grab their slice of the Bitcoin pie.
The April 2024 halving event threw fuel on the fire, cutting new Bitcoin issuance in half. History nerds were quick to point out that halvings typically trigger massive bull runs – and this time was no different. The scarcity narrative hit different when actual supply decreased while demand kept climbing.
Perhaps most surprisingly, crypto’s reputation got a serious cleanup. Illicit activity dropped to just 0.63% of total volume in 2023, with hack proceeds getting slashed in half to $1.8 billion. The wild west of crypto started looking more like a well-regulated financial market, much to the chagrin of crypto anarchists everywhere.
With gains exceeding 100% in 2023 and momentum carrying straight into 2024, Bitcoin proved its critics wrong in the most spectacular fashion possible. Not bad for a “digital pet rock,” as some skeptics once called it.
