Crypto Rewind 2023: A Year of Change

London: 19 January 2024 (TraderMade): As we say goodbye to 2023, let's look back at how the world of digital assets transformed. The year was extensive, with rising prices, more involvement from prominent institutions, and the popularity of alternative coins. Let's break down the main things we learned from a year that saw cryptocurrencies making a comeback.

Key Takeaways

• In 2023, BTC and ETH surged +154% and +92%, marking a robust recovery.
• Institutional engagement increased in regulated venues and CME BTC/ETH futures.
• BlackRock's spot Bitcoin ETF filing influenced sentiment, drawing inflows into existing ETPs and futures.
• GBTC transformed, narrowing its discount from -40 % to 9% after SEC reconsideration.
• Bitcoin evolved, acting as a risk-on asset and digital store of value.
• Investor focus shifted to altcoins, with SOL rising to $124.
• The Bitcoin network expanded, paying over $170 million in miner fees.
• Transformative trends included institutional participation, ETF momentum, and Altcoin's rise.
• Positive 2023 momentum sets an optimistic tone for 2024.

Let's dive into the highlights

Price Boom: Bitcoin (BTC) and Ethereum (ETH) had a great year, with their prices increasing by +154% and +92%, showing a strong recovery from the previous year's challenges.

Institutions Join In: Big institutions got more involved in the crypto world. They started using regulated places and got more interested in BTC and ETH futures, making the crypto space more mature and controlled.

Rise of ETFs: A big deal was made when BlackRock said they wanted to create a Bitcoin ETF. This excited people; more money went into existing Exchange-Traded Products (ETPs) and futures. The hope for the approval of BTC ETFs was a big focus for market participants all year.

Changes in Grayscale Bitcoin Trust (GBTC): GBTC, like an investment fund for Bitcoin, underwent some changes. Its price compared to the actual value of Bitcoin changed from -40 % to 9% after the SEC took another look, showing that things in the market were shifting.

Bitcoin's Different Roles: Bitcoin played two roles - it became a risky investment and a safe digital store of value. It didn't move like regular investments and stayed closely connected to Ethereum (ETH).

Altcoins on the Rise: People started looking more at altcoins, which are alternatives to Bitcoin. One altcoin, Solana (SOL), became popular and went up to $124 because people wanted to use it in different applications.

Growth in Bitcoin Network: The Bitcoin network got more prominent with new ways to use it. More than $170 million was paid to miners, and the blockchain started supporting new types of transactions. There was also a push to make Bitcoin more straightforward for regular people.

Big Trends in 2023: The big things in 2023 were institutions getting into crypto, the rise of ETFs, and altcoins becoming more popular. This changed how people viewed and used cryptocurrencies, moving away from individual market participants.

Looking Forward to 2024: The end of 2023 was good for regular buying and selling (spot) and more complex financial transactions (derivatives). This positive end makes us hopeful for a good year in 2024. The TraderMade team wishes everyone a successful and happy 2024, encouraging everyone to stay updated with the insights.

EU Cracks Down on Money Laundering: Crypto, Luxury & More in Crosshairs

The EU is flexing its muscles against dirty money, unveiling new rules tackling crypto, luxury goods, and more. This bloc-wide crackdown aims to squeeze out oligarchs, terrorists, and anyone hiding illicit wealth.

No more patchwork of national laws: The EU now boasts a uniform anti-money laundering framework, plugging loopholes for cross-border crime. Remember Danske Bank's shady €200 billion? That won't fly anymore.

From crypto transactions to fancy cars and golden visas, the net widens. EU authorities gain teeth to tackle lax countries and ensure dirty money finds no haven.

This is a good day for law-abiding businesses and citizens and a bad day for criminals and their ill-gotten gains. The EU just sent a clear message: clean up or clean out.