State of Bitcoin: 2023

State of Bitcoin 2023: The Rise of Global Crypto Adoption

As crypto continues its evolution into a foundational layer of global finance, Bitcoin stands at the center of it all. The 2023 edition of our State of Bitcoin report outlines the key trends shaping the digital asset landscape — from on-chain behavior to protocol-level innovation, institutional flows, and user adoption.

📥 Download the full report here for all 60+ pages of data, insights, and projections.

A Snapshot of the 2023 State of Crypto

2023 marked a pivotal moment in the broader crypto ecosystem, especially for Bitcoin. While volatility persisted, it was clear that Bitcoin’s infrastructure, user base, and institutional appeal matured meaningfully.

“Behind the market’s ups and downs, on-chain data reveals a compelling tale of expanding adoption and the conviction of long-term holders.”
— State of Bitcoin 2023

Throughout the year, BTC prices surged past $40,000, Layer 2 infrastructure scaled, and applications for everyday users — from rewards apps to decentralized finance protocols — gained traction.

Cryptocurrency Ownership: Self-Custody Signals Confidence

The shift toward self-custody of digital assets was one of the clearest narratives of 2023. As trust in centralized exchanges declined, investors increasingly withdrew their holdings and secured them independently.

• The number of self-custodied wallets increased steadily, even during price dips.
• Exchange-held BTC continued to fall, reducing circulating supply.
• Long-term holders accumulated during volatility — a signal of conviction, not capitulation.

These trends reflect a more mature investor mindset: owning your keys, holding through cycles, and recognizing Bitcoin as a long-term store of value — not just a speculative asset.

Institutional Interest and the Prospect of Spot Bitcoin ETFs

Institutional adoption of crypto gained ground in 2023, with ETF filings from major asset managers signaling a structural shift in how Bitcoin is viewed by traditional finance. Bitcoin's transformation from a fringe idea to a legitimate component of global portfolios was underscored by:

• The narrowing discount of GBTC.
• Billions in inflows to BTC-related funds.
• Spot Bitcoin ETF filings by BlackRock, Fidelity, and others.

A potential ETF approval in 2024 could mark a historic milestone in cryptocurrency market infrastructure — opening the door for wider access, retirement portfolio integration, and deeper liquidity.

Bitcoin in the Global Crypto Landscape of 2025

If 2023 was the year of consolidation, 2024 is poised to be a year of rapid growth. The foundations are already visible:

• Bitcoin Layer-2 solutions like Lightning, Stacks, and Rootstock are delivering scalability without compromising decentralization.
• Tools like Taproot Assets and Ordinals expand what Bitcoin can do — enabling programmable assets and NFTs directly on-chain.
• Consumer apps like Fold, Lolli, and Bitrefill continue to onboard non-technical users with real-world utility and BTC rewards.

These trends highlight how Bitcoin is evolving from a singular asset into a broader ecosystem, with touchpoints in commerce, finance, art, and privacy.

The Rise of Everyday Use Cases for Bitcoin

From shopping rewards to decentralized identity and payment rails, Bitcoin’s utility is no longer just theoretical:

• Fold reached 1M+ users earning Bitcoin for everyday spending, with over 65B sats rewarded since launch.
• Lolli expanded into retail stores, introducing Bitcoin cashback to brick-and-mortar consumers.
• Zebedee and gaming platforms enabled BTC-powered rewards for players in mainstream titles.
• Wasabi and Samourai Wallet advanced privacy protections for users seeking to transact anonymously.

These applications are driving adoption in real-world contexts, often among users new to crypto altogether.

From Layer-2 to Programmability: Bitcoin’s Technical Leap

Bitcoin's technical ecosystem matured significantly in 2023, with innovations that pushed the limits of what the network can support.

• The Lightning Network saw $230M+ in value flow through payment channels.
• Ordinals and Recursive Ordinals unlocked the ability to store rich digital artifacts (NFTs) and even host applications directly on Bitcoin.
• BitVM emerged as a theoretical model for full smart contract computation on Bitcoin — without requiring a soft fork.

These developments show that Bitcoin is not just catching up to other chains — it’s innovating on its own terms: with security, decentralization, and resilience at the core.

The State of the Crypto Market: Looking Toward 2024 and Beyond

The macro narrative continues to shape Bitcoin’s trajectory. With increased regulatory clarity on the horizon, institutional inflows rising, and broader user awareness growing, 2025 could become a breakout year for global cryptocurrency adoption.

Key themes to watch:

• Global regulatory alignment (MiCA, U.S. ETF approvals, Asia’s sandbox frameworks)
• The continued growth of Bitcoin as "digital gold" and “the millennial’s store of value”
• On-chain finance and programmable use cases built directly on Bitcoin

Download the Full Report: State of Bitcoin 2023

This blog post is just a small excerpt from our full 60+ page State of Bitcoin Report 2023, authored by the Thesis* team and contributors across the ecosystem.

Inside, you’ll find:

• Protocol deep dives (Taproot, BitVM, RGB, BRC-20)
• Global crypto adoption metrics
• User behavior and wallet data
• Projected trends for 2024 and 2025

🔽 Click here to download the full report and explore the insights shaping Bitcoin’s next chapter.