2023 has been a significant year for the crypto market. After a period known as the crypto winter in 2022, cryptocurrencies experienced a smart rebound. Bitcoin, being the first and most popular crypto, has seen a remarkable recovery. It went from a low of almost $16,000 to a high of $44,500. However, it still remains below its all-time high of $68,900.
Ether, the second most traded crypto, has also made a strong comeback. It jumped from $151 to $2,400. Solana, on the other hand, experienced the biggest surge, going from $8 to nearly $80, although it still has a long way to reach its all-time high of $259. Other cryptos such as Cardano, Polygon, Dodge Coin, and Avalanche have also made significant comebacks in 2023.
The year 2023 saw impressive gains for different cryptocurrencies. Bitcoin increased by 160%, Ether rose by 80%, and XRP gained 76%. However, Solana clearly stood out with a staggering 500% increase. Cardano saw a rise of 126%, and Avalanche experienced a jump of 235%.
Despite regulatory and tax challenges, India has emerged as one of the top markets for crypto by volume. The country introduced a 30% tax on profits and 1% TDS on all transactions. As a result, trading volumes from the Indian market shifted to offshore exchanges. While the number of crypto users in India appears strong on various exchange websites, active participation is estimated to be on the lower side.
Broker Data of Crypto trade :
According to reports, CoinDCX has 19 million users, CoinSwitch has 13 million users, WazirX has 15 million users, Zebpay has 5 million users, and Unocoin has nearly 2 million users. However, not all of these users are active participants in trading. The trading volumes in India till October 2023 reached $34 billion, but a staggering $32 billion of that was from offshore exchanges. This suggests that 93% of Indian volume comes from offshore exchanges.
Furthermore, it is estimated that 5.2 million Indian users have moved to offshore volumes due to the 1% TDS within India. Delhi has surpassed Mumbai in terms of trading volumes, with Bangalore being the second-ranked city. Pune, Jaipur, and Lucknow have the highest number of cryptocurrency investors in tier 2 cities across India. The majority of investors have focused their investments on large market capitalization cryptocurrencies like Ether and Bitcoin.
As we approach 2024, investors are eagerly anticipating whether the gains from 2023 can be sustained or even built upon. There are several factors to keep an eye on. Firstly, the approval of the SPO Bitcoin ETF is highly anticipated. Additionally, the Bitcoin Halving is scheduled for April 2024. Ethereum updates are also eagerly awaited by the street. Lastly, the rate cuts from global central banks are expected to impact the market.