Despite a Few Bumps, Bitcoin Is Maintaining Momentum

The price of bitcoin has experienced a few bumps since the beginning of the year, but it’s still up 40 percent since 2023 first began. At the time of writing, the asset is above $23,000. While this isn’t quite the $25K it hit a few weeks ago, the currency is still maintaining a price in the $20K range.

Bitcoin Is Maintaining Its Strength

Mike McGlone – a senior macro strategist at Bloomberg Intelligence – wrote the following on social media:

Headwinds remain strong. $25,000 resistance may prove significant for all risk assets.

The currency is enjoying a solid jump from where it was during November of last year. At that time, the FTX debacle was reaching its peak and the currency fell into the mid-$15,000 range. While the currency would endure a slight bit of recovery towards the end of the year and eventually finish 2022 at $16,600, things weren’t where they should have been, especially since a year before, bitcoin had reached a new all-time high of about $68,000 per unit.

Simon Peters of e-Toro fame also threw his two cents into the mix, saying:

While still markedly above their lows, the crypto market is looking tentative in the face of the possibility of stickier than expected inflation and labor market in both the US and elsewhere. This macro data is key in central banks’ thinking around rate hikes with main markets now pricing in no rate cuts in 2023. While bitcoin and ether don’t seem to be in full on fear, there is most certainly an element of jitters among market participants watching for fresh updates, and this is showing in the price movement of the past week.

2022 was easily the worst year on record for bitcoin and crypto in general. The world’s number one digital currency by market cap fell by more than 70 percent from its November 2021 high. However, it wasn’t the only asset that chose to wallow in the doldrums. Other digital currencies followed suit, and the space wound up losing more than $2 trillion in overall valuation. It was a sad and ugly sight to see given how much traders and crypto fans wound up losing.

Is the Crypto Winter Coming to an End?

The first few months of 2023 have indicated that the alleged crypto winter that was spreading throughout the previous year may be finally coming to an end. Beginning in January, bitcoin began enduring rises that ultimately saw it hit $17K, then $21K, then $23K (where it is right now again), and finally $25K in mid-February.

No doubt there’s still a lot of work to be done, but the recent price spikes have given a lot of investors and traders hope that 2022 can be forgotten quickly and that the damage done can potentially be defeated with ease.

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