Bitcoin: Is a Recovery Planned for 2023?
News JVTech Bitcoin: Is a Recovery Planned for 2023?
After a colorful year for cryptocurrencies, many investors are waiting for a sign from the Bitcoin king. Having surprisingly calmed down at the beginning of the year, will Bitcoin be able to visit new highs by the end of 2023?
Bitcoin is in the spotlight in 2023
Since January 2022, Bitcoin has seen its price fall by 62% for the entire year, accompanied by unfortunate events such as the collapse of several giants in the sector, such as Terra, 3AC or, more recently, FTX. However, it is clear that the situation is not as new as the 2013 collapse of QuadrigaCX, considered one of the largest cryptocurrency exchanges.
Although the sector has evolved, as always, the first cryptocurrency remains committed to its famous periods of volatility, regardless of the capitalization of the giants of the sector.
It is well known that we are talking about a bull run when the price of cryptocurrency rises and a bear market that tends to go down in the long run. This Bitcoin price action usually drives the rest of the cryptocurrency up or down.
In total, bitcoin has generally experienced four bull runs since its inception:
- 2011 – from $1 to $31
- 2013 – 100-1000 dollars
- 2017 – $100-$19,000
- 2020 – 3200-68000 dollars
With this latest bull run, the cryptocurrency sector seems to have captured a budding audience, as evidenced by numerous appearances by influential crypto players in fields as diverse as sports.
Capital gains from some early investors may bode well for cryptocurrency newcomers. However, after the speculative peak, a few newly enterprising investors find themselves at a loss as they buy Bitcoin at a higher price than it is today.
As a result, most Bitcoin holders and all sorts of other cryptocurrencies are waiting for an element of savings from the king of cryptocurrencies, hoping to one day see a potential Bull run again.
Bitcoin in a ‘bull run’ for 2023?
After a year full of twists and turns, many are hoping that 2023 will be less dull for cryptocurrencies. While some media or institutions predict the next “death” of bitcoin and cryptocurrencies, other pseudo “crypto experts” claim it will be “250,000” within the year. Surprisingly, none other than Marty McFly can point out who is wrong…
Among all the accurate predictions, it is difficult to form an opinion about the situation, especially since Bitcoin is not independent.
Indeed, cryptocurrency is highly correlated with various external factors and especially with the financial health of major companies in this world. While a large number of publicly traded stocks will see their prices fall in 2022, Bitcoin seems to have followed suit. Several companies, from Netflix to Tesla, recorded more or less similar losses to Bitcoin in 2022 following the COVID health crisis.
In addition to the overall economic situation, the crypto sector also needs to overcome a crisis of consumer confidence to hope for a bull run in 2023. The collapse of the second platform FTX caused cryptocurrency owners to lose billions of euros and had serious consequences for the market. Remaining platforms like Binance are acting as hostages in the face of widespread panic and recording exceptional pullbacks. This back-and-forth situation forces these companies to regain user trust.
As for the hopes of Bitcoin climbing to new heights, there are also arguments. Beyond the fundamental technological aspects of Bitcoin, which have continued to convince newcomers over the years, many hope to see the 2024 halving be a game changer. The halving of miners’ rewards every four years has proven effective in triggering past bull runs, but will it happen again this time?
