3 things we might see from crypto as 2023 winds to an end
As the holiday season approaches, anticipation in the cryptocurrency world heightens for the annual phenomenon known as the "Santa rally." Amidst this festive period, market dynamics tend to shift. This season, there are several factors that could influence the last few months of the year.
Cryptocurrency prices spiked notably at the end of 2020 and 2021, driven by increased investor optimism and institutional interest. Major financial institutions and hedge funds began viewing Bitcoin (BTC) not just as a speculative asset but as a hedge against inflation and a potential store of value. Large companies like Square and MicroStrategy added major Bitcoin holdings to their balance sheets, further solidifying this image shift.
Additionally, Bitcoin reached all-time highs, igniting a positive sentiment throughout the market. Further, institutional investment was demonstrated when businesses like Tesla made large-scale Bitcoin acquisitions publicly known. Moreover, the introduction of a number of cryptocurrency ETFs and funds gave institutional investors a more convenient and familiar way to access the market.
Firms are catering to institutional investors looking for safe storage options for their cryptocurrency holdings in the quickly evolving financial landscape of 2022 by offering custody services, which are essential for safeguarding digital assets.
Related: Bitcoin is evolving into a multiasset network
Despite some fluctuations, the trajectory was generally upward in 2022. Once skeptical, traditional financial institutions started to provide a variety of crypto services, such as lending, trading, and custody. Institutional actors have also recognized the emergence of decentralized finance (DeFi) and nonfungible tokens
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