Bitcoin opens 2023 with 9 out of 10 positive sessions
2022 has been a difficult year for bitcoin, as large-scale defaults have dampened sentiment among cryptocurrency investors, leading to a 65% decline in the asset over the past year. But bitcoin shows that 9 out of 10 positive sessions by 2023 could be lower, but not out of the running, with the first time in a month above $17,000. The development follows positive U.S. jobs data from last Friday, which suggested the United States still has a chance to avoid recession and ease into a soft landing.
Inflation is a key market driver for bitcoin – and a further drop in the US CPI this week could be the catalyst for another rally this week, setting the market tone for 2023. The continued decline in inflation is preparing the Federal Reserve to start cutting interest rates. By the end of 2023, this will allow investors to take more risk in their portfolios again.
Investors should remember that in 2022, cryptocurrencies are not a crime. Instead, progress was made with ETH Merge, which set a new standard for the bitcoin lightning network and ease of trading. consumer usability, increased security, platform extensibility and environmental friendliness. In addition to these advances, active bitcoin addresses are now over 940k, a 50% increase from the 2018 bear market.
However, with the negative impact of bad actors in the cryptocurrency industry over the past year, regulation will likely be a major talking point throughout 2023. We hope these conversations will help facilitate greater use of technology, which can only bring real benefits. financial services industry, but also facilitating greater financial inclusion globally.
Josh Gilbert, Market Analyst at eToro
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