Positioning, leverage and the speculative excesses from the previous market cycle were swept away in 2022, allowing for the seeds of the next cycle to sprout in 2023.
This encouraging institutional development helped support the demand for bitcoin as a real asset and a currency debasement hedge for a financial system awash with fiat liquidity and supportive stimulus.
Crypto was allowed to be crypto, and mostly decoupled from US equities and gold over the year (see rolling correlation chart above), albeit with lower levels of realized volatility than in prior years.
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