• The price of Bitcoin has risen 40% since the beginning of 2023, currently sitting at $23,000.
• The FTX debacle in November of last year saw Bitcoin prices falling to the mid-$15,000 range.
• Analysts are cautiously optimistic about Bitcoin’s potential for growth in 2023.
Bitcoin Maintaining Momentum
The price of bitcoin has experienced a few bumps since the beginning of the year, but it’s still up 40 percent since 2023 first began. At the time of writing, the asset is above $23,000. While this isn’t quite the $25K it hit a few weeks ago, the currency is still maintaining a price in the $20K range.
Reasons for Optimism
Mike McGlone – a senior macro strategist at Bloomberg Intelligence – wrote that headwinds remain strong and that $25,000 resistance may prove significant for all risk assets. At November of last year when FTX debacle was reaching its peak and Bitcoin fell into mid-$15K range it was not where it should have been compared to its all-time high of about $68K per unit at one point in 2021. Simon Peters from e-Toro fame also noted that there is an element of jitters among market participants watching for fresh updates which is showing in recent price movements.
The previous year 2022 was easily worst on record for Bitcoin and crypto space as whole which resulted in overall valuation loss of more than $2 trillion due to 70% fall from its 2021’s November high. But things are looking brighter this year with some analysts suggesting that Crypto Winter may be finally coming to an end given January’s rise which saw Bitcoin hitting up to $17K then further increasing up to current levels (above $23K).
It remains unclear what will happen next with Bitcoin or other digital currencies as they are now facing possible stickier inflation and labor market situation both in US and elsewhere which might lead central banks towards rate hikes without any rate cuts expected this year as well as changes happening with Ethereum 2.0 launch later this month on 1st April.
Overall despite few bumps along way so far this year looks very promising for Bitcoin and other cryptocurrencies with many people expecting further growth throughout 2023 if everything goes according to plan.