# 2023 Yearly Review

By [Olga](https://paragraph.com/@olga-4) · 2023-12-31

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![](https://storage.googleapis.com/papyrus_images/a7a3d77cf383b6a4fcd6a9a45189226f271c58f0d7e4eb1289a90ee86043b97d.jpg)

2023 has been an incredible year for digital assets, with Bitcoin up over 172%, correcting less than 20%, and net capital inflows into BTC, ETH and Stablecoins.

This highlights a rising Bitcoin dominance, which is often seen as the market recovers from protracted bear markets, such as 2021-22. Ethereum in particular has had a somewhat slow start on a relative basis, with the ETH/BTC Ratio declining to multi-year lows at around 0.052, despite a successful shipping of the Shanghai update, and growth of its L2 ecosystem.

Whilst digital assets have significantly out-performed traditional assets like Equities, Bonds, and Precious Metals all year, the rally since late in October has been responsible for the lions share of the gains. This started with a break above the psychologically important price level of $30k, as well as numerous important pricing levels.

The rise in small account balances demonstrates broad participation from mainstream retail investors (0.1 BTC-0.01 BTC). Long-term holders have taken advantage of dips in the market to expand their positions. All told, this reflects renewed confidence on the part of long-time believers, at the same time as many are acquiring BTC for the first time.

2024 is poised to be a breakout year for Bitcoin. The most prominent near-term development is the likely approval of the first Bitcoin ETF, which promises a major wave of new investment. Other exciting developments include BitVM, a means to “compute anything on Bitcoin,” which proposes a new way to process smart contracts, improving functionality and allowing more complex transactions.

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*Originally published on [Olga](https://paragraph.com/@olga-4/2023-yearly-review)*