Bitcoin, the most popular digital asset in the world, has experienced a gradual rebirth since the beginning of 2023. While the last year has been quite difficult, with prices dropping and many investors losing significant amounts of their portfolios, 2023 ushered in renewed hope that things will start improving. After a temporary setback during the spring and early days of June, when regulatory pressures seemed to take over, and it looked like they were about to target noteworthy exchanges, which would have triggered a crisis within the ecosystem, things have started looking up.

Now, most investors believe the market is set for a bull run, and traders have started to look where to buy Bitcoin before the prices get too high and it is no longer feasible for many to begin purchasing. BTC remains the most popular digital asset in the world, surpassing all the altcoins by a considerable margin, even the more popular ones.

Stocks

There’s always been a significant amount of discourse regarding the correlation between cryptocurrencies and traditional finance. While combining the two has traditionally been met with a considerable degree of skepticism from both sides, as traders believe digital assets could become more vulnerable due to fluctuations in inflation. At the same time, banking institutions see Bitcoin as too volatile for successful integration. Yet, there’s no doubt that there’s a link between the two.

Generally speaking, when traditional markets go through a difficult time, BTC also responds. However, recent research indicates that Bitcoin is no longer tied to the US stock market. Data shows that the link between the two is the lowest it has been since July 2021. During the year, Bitcoin has been at its strongest, achieving the highest value ever recorded since its introduction on the market.

The decrease in this correlation has also come as a result of both Bitcoin and stocks sustaining several hits as the economy navigated a troublesome time. As such, investors that have so far mainly focused on macroeconomics and market sentiments to guard their choices notice that they’ll soon have to adopt a different strategy.

ETFs

ETFs, exchange-traded funds, are investment funds traded on specialized platforms. Recently, they’ve created quite a bit of fuss in the cryptocurrency market, and analysts have begun paying more attention to them. Many now believe that the narrative can be split into three main subclasses:

  • Tailgating
  • Past-the-spot ETFs go live
  • The validation of crypto as an asset class

Some currently believe that the performance of the investment product flow is a test and that the way things progress is important for the general market. It’s important to note that here too, the market seems to have taken a step aside from the market, as investor engagement rates have grown steadily since mid-June.

So far, ETFs have experienced significant inflows, but analysts warn that it’s important to consider other factors that could also impact liquidity.

Incoming bulls

For a long time, the market has been under the control of a bearish tendency, and the ensuing crypto winter has made it difficult for investors to operate within the market. Many were unsure of how to proceed, given the fact the prices kept on shifting on a downward trend. However, it seems now that a bullish run is inevitable.

Recently, Binance CEO Changpeng Zhao discussed BTC’s historical tendency to move in four-year cycles and how this was likely to be the case now too. This shift is also tied to halving events, and for Bitcoin, the next one will occur in 2024. Therefore, while the coin has already grown by over 80% since the beginning of the year, it’s more likely that the next year and 2025 will bring in the most considerable changes.

As such, investors must come up with a strategy that can enable them to see significant gains as the market changes and evolves.

Mining revenues

As the crypto market becomes more profitable, all revenue is increased. Miners are no exception, and their income has recently hit $184 million. A lot of it is due to the presence of the Ordinals, which have created quite a frenzy among investors. As such, hefty incoming transaction fees have become common among Bitcoin miners.
Analytics firms see the process as a sudden awakening for the market after a long time, during which it had been caught in a cycle of underperforming and stagnation. The $184 million have been earned during the April to June window. While the figures might sound diminutive compared to the overall mining revenue of $2.4 billion, it represents more than the five prior quarters combined.

Many have seen it as an exceptional thing, and it’s quite amazing that a large part of it is due to the presence of the Ordinals, a largely experimental technology and a newcomer within the ecosystem. Working similarly to the NFTs, the Ordinals inscribe data to satoshis, the smallest unit Bitcoin can possibly be divided into. They are equal to 1/100,000,000 of a regular BTC.
Although there has been some initial pushback from the community, supporters have always claimed that Ordinals will achieve popularity and leave their mark within the blockchain. They didn’t have to wait long to be proved right.

Mining in the United Arab Emirates

Many regions in the world have become important centers for crypto mining. After China banned cryptocurrencies in 2021, its mining facilities had to be replaced. The brunt of the process was relocated to Texas, where detractors claim that its use of the power grid is unsustainable and has caused trouble for the general public by increasing the number of blackouts.

Kazakhstan and Bhutan are also important mining centers. Recently, the United Arab Emirates has become a pro-mining destination in the Middle East. The country’s capacity is believed to make up approximately 4% of the global hash rate, or around 400 megawatts. Abu Dhabi, in particular, is noteworthy for the industry due to its energy-efficient practices and its status as a center of trade of not just the United Arab Emirates but the entire Middle East.

Despite its troubles over the past year, Bitcoin will remain an important trading asset. In fact, it would seem like the pushback made it stronger.