Bitcoin 2023, a successful year

2023 has been a good year for 2023. And with massive withdrawals of Bitcoin from exchanges, it looks like this trend will continue.

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Bitcoin 2024, better than 2023?

2023 is a bountiful year for Bitcoin with an increase of almost 160% at the time of writing.

Very rarely, bitcoin withdrawals were less than 20%. In other words, it has never fallen more than 20% between two consecutive highs. On the contrary, from 2019 to 2022, the drawdown was twice as large as 50%.

This performance makes Bitcoin the second asset with the best Sharpe ratio in the world. This means the best performing asset with respect to its risk (volatility).

On-chain activity continues to argue in favor of Bitcoin. The amount of BTC on exchanges is the lowest since April 2018.

Almost 25,000 BTC worth $1 billion left exchanges this week. More than 28,000 BTC left them on Wednesday alone, the biggest BTC outflow in a year.

The total balance of BTC found at addresses known to belong to exchanges is now 2,327,000 BTC, or 11% of all Bitcoins in circulation.

It’s good news. While bitcoins generally return to exchanges for sale, the outflow of BTC suggests a long-term investment strategy.

70% of bitcoins haven’t moved for 12 months or more. Investor conviction has rarely been so strong. In order for these HODLers to turn into sellers, prices will have to rise significantly.

By the way, we should not panic if a large amount of BTC flows into the Coinbase exchange early next year. It will be BTC that will feed the ETF in the event of a green light from the SEC. Nasdaq-listed Coinbase manages nine of the 12 ETFs offered in the United States.

Speaking of ETFs, December 29th is the ETF application deadline. Investment funds that go on time can hope for a green light from January.

After that, we should first observe a new rise in Bitcoin and wait for a new impulse, which will cause a reduction by halving the rate of Bitcoin creation.

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Bitcoin is an eruption of uncensorable encrypted energy that spreads to the four corners of the world in geopolitical and inflationary turmoil. I will inform you.

DISCLAIMER OF LIABILITY

The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.

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