Despite facing numerous challenges in 2022 and most of 2023, the crypto industry has found itself in a strong position, according to recent crypto patterns. Towards the end of 2023, there were clear bullish signals that significantly lifted the industry, marking the beginning of a crypto bull run. As a result, $2.3 billion worth of funds poured into the crypto sector, indicating strong investor confidence, a trend closely monitored by various crypto staking platforms.
It’s important to note, however, that the majority of these funds went into Bitcoin. Approximately 87%, or around $2 billion of the $2.3 billion, was invested in bolstering the leading cryptocurrency. With the support of these funds, Bitcoin’s value rose by 155% over the course of 2023, especially during the crypto bull run towards the year’s end. This large inflow of money began towards the end of September and continued until the end of 2023, with only one week experiencing a net outflow of funds.
Crypto Patterns: Bitcoin’s Rising Dominance
According to Coinshares, Bitcoin has never been so dominant within the crypto market. Its last major peak was in 2020, when 80% of all crypto funds went to Bitcoin, a pattern observed by many crypto staking platforms.
The main driver behind this year’s significant rally was the prospect of new Bitcoin ETFs. Many investors saw substantial potential in investing in such instruments, anticipating their high value if approved by the SEC.
US markets were a notable source of funding, contributing $792 million of the total. However, this represents just a small fraction, 2%, of all crypto holdings in the US, which amount to $37.8 billion. In comparison, Germany contributed $663 million, Canada $543 million, and Switzerland $434 million. Collectively, the crypto assets held by institutions in these countries total around $3.3 billion. Thus, in relative terms, institutions in these countries have made significant contributions this year to the crypto market, given their smaller size.
Overall, crypto patterns enjoyed considerable success, with $458 million worth of funds invested in them. Bitcoin Mining stocks, in particular, performed exceptionally well during this period, a pattern reflected in discussions on crypto staking platforms.
