Michael Saylor Predicts 'Demand Shock' As Bitcoin's Market Cap Skyrockets 160% In 2023, Gaining $530B On ETF Hopes

Bitcoin’s BTC/USD market capitalization has surged by 160% in 2023, an increase of $530 billion, after suffering a $1.5 trillion depreciation the previous year.

What Happened: The remarkable rise was spurred by investor optimism that U.S. regulators might soon approve the first Bitcoin-focused exchange-traded fund or ETF. 

The decision, expected by Jan.10, could cause a “demand shock” in the market, according to Michael Saylor, co-founder of MicroStrategy Inc. MSTR, reported Bloomberg. 

According to Saylor, "the approval of the spot ETFs is going to be a major catalyst, it's going to definitely drive a demand shock" as crypto investors currently lack a "high bandwidth, compliant" investment channel for the token.

See Also: Low-Cost, High-Smile: 5 Crypto Gifts To Give Your Friends, Family This Christmas

Despite facing challenges such as a $4.3 billion fine for Binance and CEO Changpeng Zhao’s subsequent resignation, as well as fraud charges against FTX’s Sam Bankman-Fried, Bitcoin’s 2023 performance outperformed global stocks and gold. 

Other crypto markets, including Coinbase Global Inc. COIN, also saw gains, with a nearly 400% rise despite an ongoing SEC lawsuit.

Why It Matters: The Bitcoin rally has been accompanied by a decrease in reports declaring Bitcoin’s demise, reaching a decade-low in 2023. 

Bitcoin derivatives also saw increased activity, with Bitcoin futures open interest reaching new highs at CME Group, giving Binance a run for its money in this market. 

However, the effects of past setbacks are still visible, with the total daily value of Bitcoin trades on exchanges falling by 55% since April of the previous year, the report noted. 

Price Action: At the time of writing, BTC was trading at $43,463.20, down 1.25% in the last 24 hours, according to Benzinga Pro. 

Read Next: Want A Second Passport? El Salvador Is Now Offering Citizenship For Bitcoin Donations

This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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