News JVTech Bitcoin: Is the recovery planned for 2023?
After a colorful year for cryptocurrencies, many investors are waiting for a sign from the Bitcoin king. Surprisingly Quiet At The Start Of The Year, Will Bitcoin Manage To Make New Highs By The End Of 2023?
Bitcoin in the Spotlight 2023
Since January 2022, the price of Bitcoin has fallen by 62% for a whole year, punctuated 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 new, like the collapse of QuadrigaCX in 2013, which was considered one of the largest crypto exchanges at the time.
Although the sector has evolved, the first cryptocurrency appears to be sticking to its famous volatility cycles as usual, regardless of the capitalization of the sector’s giants.
As you know, we speak of a bull run when the price of the cryptocurrency surges upwards and a bear market when it tends downwards over the long term. This bitcoin price movement usually takes the rest of the cryptocurrency up or down.
Overall, Bitcoin has generally seen four bull runs since its inception:
- 2011 – from $1 to $31
- 2013 – $100 to $1000
- 2017 – $100 to $19,000
- 2020 – $3,200 to $68,000
With this recent bull run, the cryptocurrency sector appears to have captured a new novice audience, as evidenced by the numerous appearances by influential crypto players in diverse fields such as esports.
The capital gains of some early investors may have boded well for crypto newbies. However, once the speculative peak is reached, several newly-initiated investors find themselves at a loss, having bought bitcoin at a higher price than today.
As a result, a majority of Bitcoin owners and other cryptos of all types are awaiting a bailout from the king of cryptocurrencies in hopes of one day witnessing another potential bull run.
Bitcoin in “bull run” for 2023?
After a year of twists and turns, many are hoping 2023 will be less lackluster for cryptos. While some media outlets or institutions are predicting another “death” for Bitcoin and cryptos, other pseudo “crypto experts” claim it will be “250,000” over the course of the year. Surprise, no one but Marty McFly can tell who’s wrong…
Therefore, with all its clear predictions, it is difficult to form an opinion on the situation, especially since Bitcoin is not independent.
In fact, cryptocurrency is extremely correlated with various external factors and in particular with the financial health of the world’s major corporations. While much of publicly traded stocks saw their prices fall in 2022, Bitcoin appears to have followed the decline. From Netflix to Tesla, several companies saw more or less similar losses as Bitcoin in 2022 in the wake of the COVID health crisis.
In order to be able to hope for a bull run in 2023, the crypto industry must also come out of a crisis of confidence in users in addition to the overall economic situation. The collapse of the second platform FTX has caused crypto holders to lose billions of dollars, with serious consequences for the market. The remaining platforms like Binance are acting as collateral victims in the face of widespread panic and are seeing exceptional withdrawals. This starting point is forcing these companies to regain user trust.
As for hopes of Bitcoin rallying to new highs, there are also arguments. Aside from the fundamental technological aspects of Bitcoin that continue to win over newcomers over the years, many are hoping that the 2024 halving will be a game changer. This event, which sees miner rewards halved every four years, has proven effective in sparking past bull runs, but will it be the same this time?
