Bitcoin Maintaining Momentum Despite a Few Bumps
- The price of bitcoin is up 40 percent since the start of 2023, currently trading at around $23,000.
- Analysts have noted that headwinds remain strong and the currency could face difficulty breaking through the $25K resistance.
- 2022 was a difficult year for bitcoin with prices falling more than 70 percent from its November 2021 high.
Price Performance
At the time of writing, bitcoin is above $23,000 – down slightly from its previous peak of $25K. This is still a solid jump from where it was during November of last year, when the FTX debacle saw prices fall into the mid-$15,000 range. Bitcoin ended 2022 at $16,600. The asset enjoyed an all-time high in 2021 when it reached approximately $68,000 per unit.
Analysts Take on Bitcoin’s Performance
Mike McGlone – a senior macro strategist at Bloomberg Intelligence – has commented that “$25,000 resistance may prove significant for all risk assets”. Simon Peters of e-Toro fame has added that “the crypto market is looking tentative in the face of the possibility of stickier than expected inflation and labor market”. Both analysts are noting that while there are some headwinds impacting bitcoin’s performance right now, overall it is still doing well compared to past years.
Crypto Winter May Be Coming To An End
The first few months of 2023 have indicated that the alleged crypto winter may be coming to an end. Bitcoin began rising in January and has continued to do so ever since. Other digital currencies have followed suit and this has resulted in an overall increase in valuation by more than $2 trillion since 2022 lows were hit. It appears as though traders and crypto fans alike can breathe a sigh of relief as things seem to be turning around once again.
Conclusion
Overall, despite experiencing a few bumps along the way, bitcoin is maintaining its momentum and showing signs of recovery from what was likely one of its worst years on record: 2022. Analysts are cautiously optimistic about future performance given current headwinds but believe that if these can be overcome then further increases in price could be seen over time.
