“Bitcoin closes out November with a solid performance, showing strength and resilience in the face of market fluctuations. Find out how this digital currency continues to make waves in the world of finance.”
November brought significant developments in the crypto industry, setting up bitcoin for a strong future as investors look ahead to 2024. According to Coin Metrics, bitcoin ended the month with a 9% increase, while ether advanced by 13% and Solana’s sol token jumped by 63%. The industry found relief as FTX’s leader Sam Bankman-Fried was found guilty of criminal fraud, and the CEO of Binance pleaded guilty to charges by the U.S. Department of Justice. These events marked the closure of a painful chapter in crypto history, paving the way for new opportunities.
The potential approval of a spot bitcoin exchange-traded fund (ETF) could bring in a wave of new investors, as they have been waiting for the industry to clean up. According to Ryan Rasmussen, a research analyst at Bitwise Asset Management, the market is eagerly anticipating the approval of a spot bitcoin ETF and the next bitcoin halving in 2024, both of which are seen as strong catalysts for price.
Despite positive developments in November, December is considered a “wait and see” period for bitcoin. However, there is optimism surrounding the potential approval of an ETF, with the U.S. Securities and Exchange Commission engaging in discussions with ETF filers and providing feedback, signaling a greater openness towards the crypto industry.
Historically, November has been a strong month for bitcoin, with seven positive occurrences out of the 11 since its inception. On the other hand, December has ended in the green in just four of the past 10 years. This year, December may present investors with an opportunity to buy the dip before key events unfold in 2024.
Wolfe Research predicts a near-term pullback in bitcoin’s price, but also sees significant upside potential. In 2023, bitcoin gained about 127%, while ether and sol saw gains of 70% and 482%, respectively. This indicates a rotation in the crypto market, with investors looking beyond the potential for a spot bitcoin ETF and focusing on other narratives and opportunities in 2024.
Overall, November set the stage for a promising future in the crypto industry, with the potential approval of a spot bitcoin ETF and the upcoming bitcoin halving driving investor interest. As the industry looks ahead to 2024, there is recognition of the potential for crypto to gain a meaningful share of investor attention in the coming year.