- The price of BTC has almost doubled since the beginning of the year, surging from approximately $16,000 to over $31,000.
- Bitcoin showcases remarkable liquidity, evident through its impressive volume-to-market cap ratio of 0.02669.
During the first half of the year, the cryptocurrency market faced the repercussions of the FTX collapse and the previous year’s collapses of various crypto-related companies. Simultaneously, the industry experienced a resurgence in institutional demand for BTC and the emergence of Ordinals on the blockchain network.
Amidst these developments, the price of BTC almost doubled, surging from approximately $16,000 to over $31,000. This remarkable growth outpaced other significant assets such as gold, the S&P 500, and the Nikkei 225 index.
Increased Participation of Traditional Institutions in BTC Spot ETFs
On June 15, BlackRock, the world’s largest asset management firm overseeing approximately $10 trillion in assets, applied for a Bitcoin spot ETF. This action prompted other institutions, including Fidelity and others, to follow suit and file similar applications for spot ETFs.
Although reports suggest that the U.S. Securities and Exchange Commission (SEC) deemed these ETF applications insufficient, the firms swiftly responded by addressing the concerns raised by the regulator. This development has sparked speculation within the community that the United States could be on the verge of witnessing the approval of its inaugural spot ETF.
Moreover, Ordinal Inscriptions appeared on the Bitcoin network during the year’s first half. These inscriptions, akin to NFTs, include text, audio, and images into the smallest unit of Bitcoin, Satoshi.
At the height of their popularity, Ordinals significantly elevated Bitcoin’s average daily transactions, increasing network fees. While some BTC maximalists criticized their impact on the blockchain, a Grayscale report highlighted that Ordinals could contribute to BTC adoption by garnering more attention for the leading digital asset. According to data provided by Dune Analytics, the cumulative count of ordinal inscriptions on Bitcoin has reached 14.5 million, resulting in fees totaling more than $55 million.
Heightened Regulatory Actions by U.S. Authorities
Amid these favorable advancements, regulatory bodies in the United States intensified their regulatory scrutiny of the cryptocurrency industry. In November 2022, FTX, the second-largest cryptocurrency exchange, experienced a collapse that caused concern among investors and trading partners, tarnishing the industry’s image.
Bitcoin began the year around $16,500, with the macroeconomic conditions marked by war, inflation, and the impact of the COVID-19 pandemic, which seemed unfavorable for the blockchain sector. The hype surrounding NFTs and the associated bull run felt like a distant memory. Furthermore, in 2023, U.S. regulatory authorities, particularly the U.S. Securities and Exchange Commission (SEC), intensified their scrutiny of the crypto industry, taking stringent measures against it.
Additionally, several crypto companies, such as Beaxy, Paxful, and others, withdrew from the country due to the unfavorable regulatory landscape. Despite facing numerous challenges, Bitcoin delivered an impressive performance against all odds.
Bitcoin Price
As of press time, Bitcoin is trading at $30,920.76 with a 24-hour increase of 0.84%. It is worth noting that the total supply of Bitcoin exceeds the circulating supply, as more than 92.47% of the total supply is currently in circulation. Also, Bitcoin showcases remarkable liquidity, evident through its impressive volume-to-market cap ratio of 0.02669.
With a current market capitalization of $600.64 billion and a 24-hour trading volume of $16.03 billion, Bitcoin presents a dynamic and highly liquid market environment that attracts traders and investors seeking ample opportunities.
