2023 Digital Assets Year in Review

Navigating the 2023 Crypto Rollercoaster - Insights, Strategies and Opportunities
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With exclusive insights from leaders across the industry

Key takeaways
We take a closer look at Bitcoin, blue chip assets, altcoins, regulations and new industry developments to provide some guidance on what key themes can be expected in 2024.
Exclusive interviews from Bitwise, Bloomberg, Polymesh, Steno Research and other industry leaders.
Exclusive insider analysis on the spot Bitcoin ETF approval process.
Analyzing Bitcoin against traditional financial benchmarks.
The performance of crypto’s blue chip assets.
Regulations and other market dynamics.
Altcoin liquidity, trading and trends.
Zachary Friedman, Chief Strategy Officer
Mostafa Al-Mashita, Director, Sales & Trading
David Shafrir, Chief Executive Officer
Yacine Ouldchikh, Senior Trader
Ben Golub, Derivatives Trader
Eric Situ, Associate, Client Success & Onboarding
Todd Lawrence, Head of Corporate Finance
James Godfrey, Head of International Banking & Lending
Alan Mittleman, COO and Head of US Derivatives Sales & Trading
1. Performance of Major Asset Classes 2023
Performance of Major Asset Classes 2023
Performance of Major Asset Classes 2023
Bitcoin Stands Above the Rest
Despite volatility, Bitcoin has been the best performing asset over its lifetime, generating an extraordinary cumulative return of approx. 55,209% from 2011 to 2023. Bitcoin was also the best performing asset over the last 5 years (154.02%), and most recently in 2023 (155%) despite difficult economic and geopolitical conditions.
Correlation Data
Volatility Data
Most Volatile Assets
  • Bitcoin (SD:1594.69)
  • Oil (SD: 36.58)
  • Commodities (SD: 20.12)
Least Volatile Assets
  • US Bonds (SD: 5.98)
  • Gold (SD: 14.08)
  • DM Equity (SD: 14.77)
2. Relationship Between Bitcoin and Crypto-related Securities
Correlation between Bitcoin Price and Share Value of Leading Crypto-Related Public Securities
Now that the spot Bitcoin ETF is here, how will the crypto-related securities like Coinbase, Microstrategy, Galaxy Digital and all of the public mining companies be impacted?

Before the ETF, these public companies offered an indirect way for investors to get Bitcoin exposure and were highly correlated (0.75) to BTC. It is too early to tell if this proxy relationship will continue, or if the ETF will fundamentally alter this correlation. However, the emergence of the ETF changes the public markets landscape and it is worth monitoring these assets going forward.
3. Crypto Adoption Worldwide
The latest adoption data tell us that end-user adoption is driven by economic instability, rather then investment or speculation. 11/15 countries with the highest adoption rate are countries where crypto has been a powerful payments alternative to their sovereign currencies. More alarmingly, 5 of these 15 countries are also global leaders in inflation rate (Turkey, Argentina, Pakistan, Egypt). 
Turkey • Crypto Adoption: T-1st = 47%
• Global Inflation: 6th highest = 61.26%
Nigeria • Crypto Adoption: T-1st = 47%
• Global Inflation: 17th highest = 27.33%
Argentina • Crypto Adoption: 7th highest = 26%
• Global Inflation: 3rd highest = 143%
Egypt • Crypto Adoption: 13th highest = 19%
• Global Inflation: 11th highest = 35.8%
Pakistan • Crypto Adoption: 15th highest = 18%
• Global Inflation: 14th highest = 29.2%
4. Public Token Launches 2023
The digital asset ventures industry experienced a fundraising slowdown in the midst of crypto’s resurgence in Q4. In the last quarter of 2023, investors went away from emerging tech and early stage investing. As indicated by the 57% drop in the average raise per project. Conversely, the market caps of blue chip assets like Bitcoin and Ethereum increased by 51% and 31% during the same period.
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