2023 For Crypto ‘So Far So Good’
Since the beginning of 2023, the crypto world is thriving and investors are riding on a rollercoaster ride.
Most important, Bitcoin has been switching hands at a better and bigger price on which it was trading on 31st December 2022.
Bitcoin ended 2022 with a price tag of $16,621 but soon thereafter it started to fetch back-to-back phenomenal gains. Resultantly, it started to be trading at above $24,000.
From 1st January 2023 to date, Bitcoin witnessed its value surge by over $8,000 collectively. In other words, in less than six weeks, Bitcoin’s value has increased by over 50% from 31st December 2022 f $16,621.
So from the investors’ perspective, the question is what is now and what could be expected from Bitcoin in the near future.
Investors are eager to understand the behavior of Bitcoin and they want to know where the asset is going to be in the future. Therefore, it is very important that they get to know what the future of Bitcoin will be.
Economic Data Will Play Crucial Role in Boosting Bitcoin Gains
US’s economic data had been the most important aspect behind boosting as well as demoralizing the Bitcoin market since the end of 2021.
For instance, when payroll data was cut down in the US, the reduction brought bulls into the global crypto economy, especially Bitcoin.
Similar was the case when the data had been positive, it subsequently brought Bitcoin’s market down to an alarming level. As the inflation rates come in higher than expected, the Feds increase the interest rates.
This results in the dollar price gaining power while the assets trading against the dollar lose their momentum.
Recently, the US has released fresh data pertaining to payrolls. Economists and experts were expecting that the data would be less than 185,000.
However, it turned out that the data provided for 517,000 payrolls i.e. at least three times bigger than what was expected.
This sudden change in the data, quickly frustrated the crypto market, including Bitcoin, which then turned from bullish to bearish.
Soon after the data release, some experts started to assume as if the US Federal Reserve might be hinting at ‘disinflation’. However, such an assumption finds almost zero support.
Frustration in the Bitcoin Market
It would not be doubtful to suggest that at present Bitcoin market is rather confused. This is due to the fact that US Federal Reserve has made a sudden shift from rather a tightened monetary policy.
Furthermore, the crypto market was jolted when the Securities & Exchange Commission of the US won a case involving ‘staking’ against Kraken.
It is now a well-established principle that ‘staking’ involves ‘securities’ and hence staking is contrary to the laws governing securities.
Nobody in the virtual asset industry had expected the decision to come in favor of the SEC and against Kraken.
People like Brian Armstrong, CEO of Coinbase, had said that targeting ‘staking’ would not be for the benefit of US investors.
Coinbase’s CEO has undertaken to contest the ruling before an appropriate forum.
This was the main reason why the crypto economy’s growth has been curtailed for the time being.
Investors’ Hopes for February 2023
It is expected that Bitcoin may be falling beneath its lower support level of $21,200. If it does, then further downsizing in Bitcoin as well as the global crypto economy is possible.
By the time of this writing, Bitcoin has already started to move upward and in the process has reached a value of $21,818.
Two days ago it went below the $20,000 range and now it is back on its track.
The positive side is that Bitcoin is ahead of its lowest point of $21,000 which the coin was going through on 20th January 2023.
As far as investors’ hopes are concerned for February, they can reinforce their confidence back into Bitcoin because the market is moving up.
