Bitcoin: is recovery scheduled for 2023?
JVTech News Bitcoin: is recovery scheduled for 2023?
After a colorful year for cryptocurrencies, many investors are waiting for a sign from the Bitcoin king. Very quiet at the start of the year, will Bitcoin manage to reach a new high at the end of 2023?
Bitcoin is in the spotlight in 2023
Since January 2022, Bitcoin has seen a 62% decline in price over the entire year punctuated by unfortunate events such as the collapse of several giants in the sector such as Terra, 3AC or later FTX. However, it is clear that the situation is not new, such as the collapse of QuadrigaCX in 2013, which was considered one of the largest crypto exchanges at the time.
Although the sector has evolved, as always the first cryptocurrencies seem to be sticking to their famous cycles of volatility, despite the sector’s gigantic capitalization.
As everyone knows, we are talking about a bull run when the price of a cryptocurrency shoots up and a bear market when it tends to fall in the long term. These Bitcoin price movements usually carry the rest of the cryptocurrency up or down.
In total, since its creation, bitcoin has generally had four bull runs:
- 2011 – from 1 to 31$
- 2013 – $100 to $1000
- 2017 – $100 to $19,000
- 2020 – $3,200 to $68,000
Through this latest bull run, the cryptocurrency sector seems to have conquered a new fledgling audience, as evidenced by the many appearances of influential crypto players in areas such as sports.
Capital gains from some early investors may promise good things for newcomers to crypto. However, once the speculative peak is reached, some investors who are just starting out find themselves losing money as they buy Bitcoin at a higher price than today.
As a result, the majority of holders of Bitcoin, and of all other cryptocurrencies, are waiting for a rescue element from the cryptocurrency king in the hope of one day seeing the potential bull run again.
Bitcoin, on a “bull run” for 2023?
After a year full of twists and turns, many are hoping 2023 will be less lackluster for cryptos. When some media or institutions predict the “death” of bitcoin and other crypto, other fake “cryptoexperts” claim that it will be “250,000” during the year. Surprise, no one can point out who is at fault except Marty McFly…
Among all the clear predictions, it is therefore difficult to form an opinion on the situation, especially since Bitcoin is not independent.
Indeed, cryptocurrencies are highly correlated with various external factors and in particular with the financial health of the world’s largest corporations. While most publicly traded stocks have seen their price decline over the course of 2022, Bitcoin appears to be keeping up with the decline. From Netflix to Tesla, several companies recorded roughly the same losses as Bitcoin in 2022, following the COVID health crisis.
In addition to the overall state of the economy, to expect to see a pickup in 2023, the crypto sector must also emerge from a crisis of confidence in users. The collapse of the second platform of FTX has caused crypto holders to lose billions of euros, leaving serious consequences for the market. The remaining platforms, such as Binance, acted as collateral in the face of widespread panic and recorded extraordinary draws. This back-to-square-one situation is forcing these companies to regain user trust.
As for hopes of seeing Bitcoin soar to new highs, the arguments are there too. Despite the fundamental technological aspects of Bitcoin that have continued to reassure newcomers over the years, many expect to see the 2024 half be a game-changer. This event of halving the miner’s reward every four years has proven effective in triggering bull runs in the past, but will it happen again this time?