The year 2023 is drawing to a close, and the festive season is just around the corner, as is 2024.
Let's take a quick look back at this explosive year in the cryptocurrency market: Bitcoin has outperformed all asset classes. At the time of writing, Bitcoin has returned 155% since January 1, while the S&P 500 has returned 21% and the CAC 40 16%.
Diversifying your portfolio with cryptocurrency, even in small amounts, could have boosted your overall performance.
You may be wondering whether it's too late to invest, and whether 2024 will be just as profitable.
Rest assured, it's not too late. The rise we've seen this year has been largely stimulated by the arrival of institutional investors on the market and by the Bitcoin Spot ETF scheduled for early 2024.
As the market is still in its infancy, institutions cannot invest all at once, as this would cause the market to fluctuate too much. This is why they will continue to do so little by little in 2024, and this could accelerate with the arrival of the ETF, attracting new investors to the market.
What's more, the market will also be influenced by Bitcoin's halving, which occurs every 4 years.
What is it? It's the reduction in rewards obtained by Bitcoin miners (who secure the network). This event has several consequences:
Miners' rewards are divided by 2, reducing the supply put into circulation.
Miners therefore choose to keep their Bitcoin rewards to drive up prices, thus maintaining their remuneration level at a level similar to that before halving.
As the number of Bitcoins is limited, supply gradually decreases, while demand continues to increase, driving up prices.
As the year draws to a close, explore new investment avenues with the support of Capital Conseils². Our finely honed expertise in this ever-changing world ensures support tailored to your financial needs. Seize the opportunities of 2024 with confidence by consulting Capital Conseils² today. Make every decision a step towards a promising financial future!
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