In the last few months of 2023, Bitcoin experienced a remarkable recovery after a poor first half of the year. The currency significantly drove growth, becoming one of the most lucrative investments of the year. In fact, the crypto coin rallied by as much as 150% by year-end, thanks to a Bitcoin bull run.
Companies such as Coinbase, Grayscale, and MicroStrategy, closely tied to Bitcoin’s value, managed to outperform the coin. Their stocks rose by 300% as Bitcoin profits increased. Perhaps the most notable stock growth was that of Marathon Digital, whose shares grew by 688% in value.
We can conclude that with Bitcoin’s rise, the crypto significantly drove the remarkable growth of these companies. This made these companies among the most profitable across the whole of the US this year. Among firms with a value of at least $5 billion, the four stocks mentioned were among the eight best-performing in the entire market.
Some may express surprise at this rapid growth, given the disastrous year for the crypto industry in 2022. Cryptocurrencies collapsed everywhere after the fall of crypto hedge funds, crypto lenders, and, most significantly, FTX. The founder of FTX, Sam Bankman-Fried, faced prosecution and was found guilty on multiple charges. Moreover, US regulators aggressively prosecuted many crypto firms.
All of this cast the crypto industry in a very poor light. Many predicted the end of the crypto sector or expected it to become marginal at least. However, the industry has come roaring back in the last few months.
Several factors contributed to this Bitcoin bull run. Firstly, many of the major crypto trials have concluded, inflicting all the possible damage to the industry. Secondly, Bitcoin’s halving is coming up in May 2024, which will cap the supply of Bitcoin, driving up its value. Lastly, the prospect of a brand-new Bitcoin ETF has put the market in a very positive mood, presenting a potentially very lucrative avenue for investment.
