December 2023 Crypto Market Forecast

Investors have flocked to Bitcoin and other cryptos in recent months as investors anticipate the SEC could soon approve the first spot cryptocurrency exchange-traded fund to trade on a major U.S. exchange. However, regulators continue to clean up the cryptocurrency industry by targeting crypto exchanges and their high-profile executives, including FTX’s Sam Bankman-Fried and Binance’s Changpeng Zhao.

In addition, crypto investors are hoping the Federal Reserve has finally reached its terminal interest rate of the current tightening cycle and can navigate a soft landing for the U.S. economy in 2024.

November Crypto Market Performance Optimism surrounding potential SEC approval of a spot crypto ETF pushed Bitcoin prices to new 52-week highs above $38,000 in November. Bitcoin prices pulled back from those highs in the closing week of November but were on track to finish the month above $37,300. After rising as high as $2,135 in the month, Ethereum (ETH) prices were on track to finish November above $2,030 as investors hope a potential spot Bitcoin ETF approval would open the door for a spot Ethereum ETF as well. Solana (SOL) rallied another 57% in November, boosted in part by comments by Ark Invest CEO Cathie Wood, who praised the crypto’s high speed and low cost relative to Ethereum. Even after a significant year-to-date rebound, Bitcoin prices remain down more than 45% from their all-time high of about $68,790 in November 2021. Bitcoin prices gained more than 8% in November and are about 120% year-to-date. Ethereum prices gained about 12% in the month and are up 56% overall so far in 2023.