Bitcoin: is the recovery scheduled for 2023?

News JVTech Bitcoin: is the recovery scheduled for 2023?

After a colorful year for cryptocurrencies, many investors are waiting for a sign from the Bitcoin king. Surprisingly calm at the start of the year, will Bitcoin manage to visit new highs by the end of 2023?

Bitcoin in the spotlight in 2023

Since January 2022, Bitcoin has experienced a price drop of 62% over a full year marked by unfortunate events such as the collapse of several giants in the sector such as Terra, 3AC or 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 biggest crypto exchanges at the time.

Although the sector has evolved, the first cryptocurrency as usual seems to stick to its famous cycles of volatility, regardless of the capitalization of the giants of the sector.

Well known to everyone, we are talking about a bull run when the price of the cryptocurrency goes up and about a bear market when it tends down in the long term. This Bitcoin price movement usually takes the rest of the cryptocurrency up or down.

In total, since its creation, bitcoin has generally experienced 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 captured a new novice audience, as evidenced by the numerous appearances of influential crypto players in several fields such as sports.

The capital gains of some early investors may have held the promise of good things for crypto newbies. However, once the speculative peak is reached, several novice investors find themselves at a loss as they bought Bitcoin at a higher price than today.

As a result, a majority of Bitcoin holders, and other cryptos of all kinds, are waiting for a savings element from the king of cryptocurrencies in the hope of one day seeing a potential Bull run again.

Bitcoin, in “bull run” for 2023?

After a year full of twists and turns, many are hoping that 2023 will be less blank for crypto. When some media or institutions predict another “death” of bitcoin and cryptos, other pseudo “crypto experts” claim that it will be “250,000” during the year. Surprise, no one is able to indicate who is wrong except Marty McFly…

Therefore, among all its clear predictions, it is difficult to form an opinion about the situation, especially since Bitcoin is not independent.

In fact, cryptocurrency is extremely correlated with various external factors and especially with the financial health of the big companies in this world. While a large portion of the listed stocks saw their price drop during 2022, Bitcoin seems to have followed the decline. From Netflix to Tesla, several companies recorded more or less similar losses to Bitcoin in 2022 following the COVID health crisis.

In addition to the overall state of the economy, to hope to see a bull run in 2023, the crypto sector also needs to emerge from a crisis of confidence vis-à-vis users. The collapse of the other platform FTX has caused crypto holders to lose billions of euros, leaving serious consequences for the market. The remaining platforms, such as Binance, are acting as safe-havens in the face of widespread panic and recording extraordinary withdrawals. This back-to-squad-one situation forces these companies to regain user trust.

As for the hope of seeing a Bitcoin rise to new heights, arguments also exist. In addition to the fundamental technological aspects of Bitcoin, which continue to convince newcomers over the years, many hope to see the 2024 halving be a game-changer. This event of halving miner rewards every four years has proven effective in triggering previous bull runs, but will it be again this time?

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