Year-End Review: Crypto Resilience After Turmoil
As 2023 comes to a close, the crypto industry finds itself in an unlikely position: recovering, reorganizing, and even gaining institutional momentum — despite a year marred by lawsuits, bankruptcies, regulatory uncertainty, and macroeconomic pressure.
From the collapse fallout of FTX and Celsius to the SEC’s aggressive enforcement campaign, few would have predicted that Bitcoin would finish the year above $40,000 or that institutional players would be doubling down on ETF filings. Yet, resilience — not ruin — became the defining theme of crypto in 2023.
Here’s a look back at the key events that shaped the year and why 2023 may be remembered as the beginning of a new foundation for the industry.
The Hangover from 2022
Crypto entered 2023 still reeling from the devastating events of the prior year:
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FTX collapsed in November 2022, triggering a wave of bankruptcies, including BlockFi, Voyager, and Genesis.
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Public trust in exchanges and custodians was at historic lows.
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The SEC increased scrutiny, suing or investigating multiple crypto companies.
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The macro environment was hostile: high interest rates, inflation, and a strong dollar suppressed risk appetite.
Sentiment was deeply bearish in January. Many predicted a long winter — and for some sectors, it certainly was. But cracks in the pessimism began to show by the second quarter.
Bitcoin and Ethereum: Slow but Steady Recovery
After dipping below $17,000 at the start of the year, Bitcoin steadily climbed, boosted by:
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Lower inflation and shifting Fed policy, improving risk sentiment.
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The looming 2024 halving, driving long-term investor accumulation.
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The BlackRock ETF filing in June, signaling renewed institutional interest.
By December, BTC had crossed the $42,000 mark, its highest price since April 2022.
Ethereum, meanwhile, strengthened its fundamentals:
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The Shanghai upgrade in April enabled ETH withdrawals for stakers.
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Liquid staking protocols like Lido and Rocket Pool expanded rapidly.
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ETH ended the year trading above $2,200, with network activity slowly recovering.
The two leading assets served as anchors in a year that tested the conviction of long-term holders.
The Regulatory Crackdown: Lawsuits and Signals
Perhaps no theme dominated crypto headlines in 2023 more than regulation. The U.S. Securities and Exchange Commission (SEC), under Chair Gary Gensler, launched a series of enforcement actions, including:
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Coinbase and Binance: Both sued for operating unregistered exchanges and offering unregistered securities.
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Altcoins targeted: The SEC named SOL, ADA, MATIC, and others as securities in lawsuits.
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Staking and DeFi: Platforms like Kraken and Uniswap came under scrutiny.
Despite these actions, judicial pushback began to shift momentum:
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In July, Ripple won a partial victory in its ongoing case, with a federal court ruling that XRP is not a security in retail transactions.
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In August, Grayscale won its lawsuit challenging the SEC’s denial of a spot Bitcoin ETF.
These decisions signaled that the courts may not fully align with the SEC’s approach — and gave the industry new hope for regulatory clarity through legislation rather than enforcement.
Institutional Engagement: ETFs and Beyond
Midway through 2023, sentiment began to shift with a flurry of new ETF filings from major asset managers:
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BlackRock, Fidelity, ARK Invest, Invesco, and WisdomTree all submitted or updated proposals for spot Bitcoin ETFs.
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The Grayscale win increased pressure on the SEC to approve these filings.
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Analysts began predicting approval as early as Q1 2024.
At the same time, institutional adoption continued behind the scenes:
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CME saw record futures volume, particularly in BTC and ETH contracts.
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Custody solutions expanded through Fidelity Digital Assets, BitGo, and Coinbase Prime.
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Tokenization of real-world assets (RWAs) gained traction, with experiments in treasury bonds, funds, and commodities on-chain.
Even as the SEC clashed with the industry, Wall Street began preparing for crypto’s next phase.
Altcoin Performance: Cautious Optimism
While Bitcoin and Ethereum led the recovery, altcoins lagged, especially those directly targeted by regulators. Still, some narratives gained strength:
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Layer 2s (Arbitrum, Optimism) continued to grow in TVL and transaction volume.
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Solana, after a brutal 2022, staged a major comeback — driven by rising developer activity, successful NFT projects, and resilience post-FTX.
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DeFi protocols stabilized, with Uniswap, Aave, and Curve regaining user volume, though still far below 2021 highs.
The overall altcoin market remains cautious, but selective optimism returned.
Culture, NFTs, and Web3
After the speculative blow-off top of 2021 and the crash of 2022, the NFT market found a quieter rhythm in 2023:
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Projects with real communities and long-term roadmaps like Pudgy Penguins and Azuki remained active.
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Gaming and metaverse applications slowed, but infrastructure building continued.
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Major brands like Nike and Starbucks quietly expanded their Web3 loyalty initiatives.
Though less flashy than before, Web3’s foundational development continued throughout the year.
Outlook for 2024: Signs of Maturity
Crypto ends 2023 stronger than it began — but also changed.
Investors, developers, and institutions are approaching the space with more caution, more regulation, and more infrastructure. This is no longer a story of wild speculation alone, but one of resilience, integration, and evolution.
Key themes for 2024 include:
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ETF approvals and institutional flows
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The Bitcoin halving in April
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On-chain finance and tokenized assets
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The future of regulation — through Congress or more lawsuits
Whether crypto enters another bull market or not, one thing is clear: 2023 was the year crypto didn’t collapse — it adapted.