Doc’s 2023 Crypto Review

As 2023 draws to a close, let’s take a quick look in the rearview mirror before we turn around and look forward to 2024, and what we can expect to see. 

Performance

Let’s cover the performance of the top four market-cap coins for 2023: 

BTC – up 26,010 or 157%

ETH – up 1118.9 or 93.6%

SOL – up 94.87 or 952%

BNB – up 71.56 or 29.08%

(these numbers as of the morning of 31DEC) 

The biggest story is Solana, by far. Once buried and left for dead in the wake of the FTX debacle, Solana is coming on strong as THE Layer One solution. SOL went long on our Trend Trading strategy on 19 OCT 2023 at $25 and has remained long ever since. Binance Coin is also shaking off the dust of yet more SEC over-reach and has climbed out of the dungeon to challenge the high water-mark of 2023 again. And Bitcoin and Ethereum continue to just reliably chug higher. We have been DCA’ing into BTC/USD since mid-May 2023 and we are up about 40% from our efforts there. 

A great year which (as they all do) started on a very sour note with the hangover effect of FTX. 

The Outlook for 2024 and Beyond

I think that 2024 will bring a huge amount of chaos – with opportunity in abundance available for those with strong stomachs. There are two very specific events that will happen in the near future, which investors are already applying their expectations to: 

The Bitcoin Halving

The BTC Halving date will occur sometime around April of 2024; many are expecting an immediate rally based on the increasing scarcity of supply, but in the past there has been a run-up in price to this halving event, and then months go by before there is any actual upside price pressure on BTC.  

The Bitcoin ETF

A more immediate possibility is the approval of one (or possibly several) Bitcoin ETFs being released for global investment. This has the potential to bring $Trillions flooding into the asset, however there’s an equal possibility that many institutional spot holders will sell out of their holdings to trade for more liquid/fungible BTC ETF shares. The short-term volatility could get to be very intense and I’m expecting at least one “sell the news” event to occur in 2024. 

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Apart from those two events, I believe that with the interest rate relief expected to come in 2024, risk capital will continue to come flooding back into risk assets, and out of fixed-rate instruments that peaked in 2023. I do believe that this will create an underlying bid or “price floor” below all crypto assets, so we will be in a “buy the dip” mode going forward. 

Altcoins also tend to be “late bloomers” in a market cycle so we will focus on finding opportunities outside of the Top 30 market cap that we can use our standard toolkit of strategies on and start to track them in the platform. 

I strongly believe that 2024 will create generational wealth-building opportunities and I am all-in on finding as much alpha as we can create! I look forward to working with you to achieve this wealth event in the coming year. 

Happy New Year all! 

cheers………..Doc Severson