Matrixport Report: Bitcoin Holders' Wealth Increased by $500 Billion in 2023

ChainCatcher message, according to Matrixport's latest report, Bitcoin holders' wealth increased by approximately $500 billion in 2023. The report indicates that the decline in U.S. inflation, from 8% to 3.1%, is a key factor in this growth, with expectations that it will further drop to 2% in 2024. Additionally, Bitcoin miners are limiting the supply of new Bitcoins during the halving cycle, which historically has led to new highs for Bitcoin six months after the halving, and this is expected to happen again in April next year.

The report also mentions that despite the Federal Reserve guiding the market to cut interest rates by 75 basis points in 2024, the gap between the federal funds rate and the consumer price index remains significant, reaching up to 220 basis points. With support from the macroeconomic environment, Bitcoin prices are expected to rise in 2024. At the same time, the report analyzes the high funding rates for Bitcoin, indicating that traders' expectations for future prices are increasing, as well as the potential impact of Bitcoin spot ETF approvals on the market. Although Bitcoin has been in a consolidation range since December 8, it is expected that with the approval of Bitcoin spot ETFs in early 2024, its support level ($40,000) will remain stable.

The report also focuses on the development of decentralized finance (DeFi). Although the overall performance in 2023 was below expectations, Lido's total locked value (TVL) saw significant growth, increasing from $6 billion to $20 billion. Furthermore, the discount of Grayscale Bitcoin Trust (GBTC) narrowed from -47% to -8%, with its price increasing by +326%, making it a highlight of the year.