Bitcoin is on track to close a landmark year with notable momentum. The leading cryptocurrency has surged around 160% in 2023, while Terra, the stablecoin rebuilt after its earlier collapse, bounced to roughly $43,100, its highest level since April 2022. Bitcoin remains within reach of its all time high, trading about 28% below that peak. The broad tech sector in the United States delivered meaningful gains as well, though it lagged the Nasdaq, which advanced around 37% for the year. If this trajectory holds, Bitcoin would join a select group of standout years, following a stretch where it rose roughly 1,375% in 2017 and about 305% in 2020.
Where could prices move after these recent peaks? Analysts anticipate Bitcoin to continue climbing within an upward channel, with a support floor near $35,000 for now. The market eyes the psychological resistance around $40,000 and $42,000, with potential advances toward the $45,000 to $50,000 zone. Diego Morín, an analyst with a British brokerage, notes the path remains constructive as investors weigh macro signals and liquidity conditions.
Industry insiders in the banking sector have grown more optimistic. Standard Chartered expects Bitcoin to finish the year near $100,000. The bank points to the anticipated launch of exchange traded funds for both Bitcoin and Ethereum in early 2024 as a route to wider corporate participation and institutional involvement.
Recent momentum is also shaped by expectations around Federal Reserve policy and the regulatory environment in the United States. A pause in rate hikes and the possible approval of a Bitcoin ETF by the U.S. Securities and Exchange Commission in January have added to renewed demand from fund managers who could gain easier access through these vehicles.
Bloomberg projects a strong likelihood that the SEC will authorize Bitcoin ETFs within a narrow window in early January. Major asset managers have already filed applications, including BlackRock, with others such as Ark Invest and Grayscale Investments showing interest. Some voices caution that new ETFs could exert downward pressure on Bitcoin prices if demand fluctuates amid regulatory moves.
Investors and analysts point to ongoing macro concerns as a driver of renewed interest in cryptocurrency. Elevated debt levels in various states and countries have pushed some investors to diversify into digital assets, viewing Bitcoin as a potential store of value amid uncertain financial landscapes.
Analysts also highlight supply-side dynamics as a factor behind price action. The next Bitcoin halving is anticipated to occur between March and June 2024, reducing the reward miners receive roughly every four years. Historically, each of the previous halvings has coincided with price highs within a year, fueling expectations that scarcity could push prices higher again. Today, around 19.5 million Bitcoin are in circulation out of a capped 21 million supply, underscoring the gradual tightening of available supply as the market evolves.
Jamie Dimon’s remarks about Bitcoin and the broader regulatory debate
Jamie Dimon, head of JPMorgan Chase, testified before a U.S. Senate banking committee and voiced strong skepticism about cryptocurrencies. He suggested that if given government power, cryptocurrencies might face significant restrictions, arguing that the primary real-world use cases have involved illicit activity in the eyes of some critics. His comments reflect a broader tension between traditional financial institutions and the evolving digital asset landscape.
This latest stance adds to a long-running conversation about the role of digital assets in mainstream finance. While Dimon has previously dismissed certain cryptocurrency projects as exaggerated, the dialogue around their potential uses and regulatory treatment continues to evolve with the industry.
Meanwhile, traditional banks are not retreating from digital assets. French lender Societe Generale recently announced the launch of its own cryptocurrency product line. The new token is designed to be stable and is set to be listed on a major European exchange. Built on the Ethereum network and tied to the euro, it signals a growing appetite among established banks to explore blockchain-based offerings while keeping an eye on regulatory developments and market reception.