Bitcoin, the world’s largest cryptocurrency, kicked off the new year on a robust note by surpassing the $45,000 mark on Tuesday, reaching its highest point since April 2022. The cryptocurrency, which experienced a remarkable 156% gain in 2023, marked its strongest yearly performance since 2020. Despite this surge, it is still a considerable distance from its all-time high of $69,000 achieved in November 2021.
As of the latest update, Bitcoin was up by 2.5%, trading at $45,318. Alongside Bitcoin, the second-largest cryptocurrency, Ether, also demonstrated positive momentum, registering a 1.2% increase and reaching $2,386.50 on Tuesday. Ether experienced a notable surge of 91% throughout the year 2023.
The influence of Bitcoin’s performance extended to crypto-related stocks, with companies like Riot Platforms, Marathon Digital, and CleanSpark witnessing gains ranging from 7% to 10%. These stocks rebounded after experiencing significant declines on the last trading day of 2023.
In Nigeria, cryptocurrency usage has consistently maintained its position as the highest in Africa, with the country emerging as one of the most developed in terms of crypto adoption. A significant shift occurred recently when the Central Bank of Nigeria (CBN) lifted the ban on cryptocurrency transactions. The ban, imposed in February 2021, prohibited banks and financial institutions from engaging in or facilitating transactions involving crypto assets.
The CBN’s recent circular, issued on December 22, 2023, outlined guidelines for banks and financial institutions regarding the handling of accounts, settlement services, and acting as channels for foreign exchange inflows and trade for entities dealing in crypto assets.
Despite previous regulatory limitations, Nigeria’s crypto market has shown resilience, experiencing a 9% year-over-year growth in transaction volume to reach $56.7 billion between July 2022 and June 2023, according to a report by the New York-based blockchain research firm Chainalysis. The lifting of the ban is expected to contribute to further growth and development in Nigeria’s cryptocurrency landscape.
