Bitcoin Continues To Push Forward, Distancing Itself From The Rest Of The Crypto Market 

0 comments

Not all cryptocurrencies are created equal and nothing proves this point better than Bitcoin’s undisputable supremacy. There are many aspects that make Bitcoin stand out from the crowd, starting with the fact that it is the first decentralized digital currency cryptocurrency created which ushered in a brand-new asset class and ending with it being the world's most popular cryptocurrency and the largest one by market capitalization.

Bitcoin’s fame and dominance have reached such a level that in many people’s minds, Bitcoin’s name is synonymous with crypto. Although the market is now populated with over 26,000 different cryptocurrencies, most traders and investors prefer to stick to the first comer and buy Bitcoin with bank transfer or via other payment methods to diversify their portfolios. 

The flagships crypto has also seen its fair share of hardships in the form of harsh criticism and recurrent bear markets, but for better or for worse, it has remained in a league of its own, establishing itself as an untouchable and unstoppable asset. If there was ever a hope that a new coin could come along and sweep Bitcoin off its throne at some point, this prospect is getting weaker by the day.  

Instead of growing competition, the gap between Bitcoin and the altcoins continues to deepen, making it harder for new projects to step into the spotlight. This year’s events have solidified Bitcoin’s position as the leading crypto and put more distance between the first place and the rest of the contenders. 

It’s as if Bitcoin is advancing at a greater speed while all other cryptocurrencies are stuck in slow-mo. So, let’s take a closer look at Bitcoin’s recent progress and current standing in relation to the evolution of the crypto market. 

Bitcoin is back and it’s bolder than ever 

Bitcoin’s price performance in 2023 has been nothing short of impressive, putting the asset on a clear path to recovery. One could safely say that Bitcoin is out of the crypto winter woods and has been for quite a while now.

From $16,000 back in January, Bitcoin managed to jump to almost $45,000 in December and is currently trading at $42,587. This represents a massive gain of more than 150% in less than a year. 

Bitcoin

Much of Bitcoin’s price appreciation has been driven by two major events. The first is the rise in institutional interest and participation in the crypto market, particularly in the EFT space, signalling growing acceptance and recognition of Bitcoin’s potential.

2023 is the year when spot Bitcoin exchange-traded funds have come back into the spotlight, with several reputable asset management firms like BlackRock, Fidelity, Valkyrie, ARK Investments and 21 Shares expressing their interest in launching spot Bitcoin ETFs by submitting applications with U.S. Securities and Exchange Commission.

The SEC is known for its strict approach when it comes to reviewing this type of propositions, having rejected all applications that have been put forward in the past. The reason for this reluctance has to do with concerns related to market manipulation and fraud. However, this time around, analysts are almost certain that the SEC will give the green light for the first spot Bitcoin ETF

This would not only increase Bitcoin’s accessibility but would also address issues related to volatility and uncertainty, creating a safer and more stable crypto ecosystem that would encourage investors to give digital assets a chance.

Bitcoin ETF

The anticipation surrounding spot Bitcoin ETFs and the positive impact they could have on the crypto industry has led to a growing wave of optimism, pushing Bitcoin on an upward trajectory over the past few months. 

The upcoming halving event has also contributed to this newfound enthusiasm and the resultant price increase. With the reward for mining Bitcoin set to be cut in half in April 2024 and signs of a potential rally already present, the entire crypto community awaits with bated breath for the usual appreciation pattern to repeat itself next year and lead Bitcoin on a new bull run. 

Keeping up with the crypto king 

As you can see, Bitcoin is doing a lot better right now than it has in a while, gaining traction and getting ready to break new boundaries. But while the crypto king is making rapid progress, the same cannot be said about the rest of the industry. Much of the market is lagging far behind Bitcoin, turning the competition in the crypto sphere into a one-horse race. Not even Ethereum managed to qualify for the battle. 

As the second-largest crypto in the market and the leader of altcoins, Ethereum is generally regarded as Bitcoin’s main competitor. Ethereum has always had a solid footing in the crypto market for being a hub of innovation and having diverse real-world use cases. 

Its smart contract functionality and the cutting-edge applications enabled by Ethereum have led to the development of a thriving ecosystem around its blockchain. However, despite all these advantages, Ethereum was still greatly outshined by Bitcoin and all the buzz around spot Bitcoin ETFs. 

Educating the market on blockchain

The figures leave no room for doubt. While Bitcoin jumped up by more than 150%, Ethereum has seen a 90% increase this year, so it’s pretty clear that the original crypto is the big winner of 2023.

As for the rest of the altcoins, projects like Cardano, Ripple and Tron put in a fairly good performance, but they are far from being on par with the crypto king. This goes to show that Bitcoin’s first-mover advantage makes it virtually impossible for any other crypto to come close to it, at least for the time being. 

Bottom line 

As Bitcoin continues to gain more ground in the crypto space, it’s becoming increasingly harder for other coins to compete with it and catch investors’ attention. But crypto is still a relatively new industry and there’s no telling what might happen next. 

So, while Bitcoin is still enjoying its moment in the sun, one should also keep an eye on newcomers and the developments taking place in the crypto market. 

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}