A new report suggests that bitcoin had its best January since 2013 (ten years). The currency rose by nearly 40 percent and incurred a $7,000 hike to its price.
Bitcoin Posts Its Best January Results Since 2013
Bitcoin has its worst year (arguably) in 2022. After hitting a new all-time high of $68,000 per unit in November of 2021, the world’s number one digital asset by market cap began trekking a bearish path that ultimately saw it lose more than 70 percent of its value within 12 months. The currency ended 2022 at the mid-$16K point, and there were several other assets that followed in its footsteps. This contributed to the crypto space falling in value by more than $2 trillion in under a year.
Since January 2023 first entered the fray, the asset has endured some bullish trends that have caused its price to spike somewhat in the previous weeks. While things are nowhere near their high points of 2021 and there is still plenty of room for healing, the asset is giving a lot of traders hope that perhaps it could still come back and be a top-tier trading tool once more.
Markus Thielen – head of research and strategy at digital asset services provider Matrix Port – commented in a recent interview:
Bitcoin is up +40 percent year-to-date, with +35 percent of those returns occurring during US-trading hours. That’s an 85 percent contribution of the rally associated with U.S.-based investors.
Nathan Thompson – a lead tech writer at crypto exchange Bybit – also threw his two cents into the mix, mentioning:
More measured rate hikes globally tilting to stability will reduce the headwinds as BTC edges towards fresh heights, but overall, investors are more — mentally and portfolio-wise — prepared than ever to deal with volatility. The broader implication is that these movements reflect BTC’s increasingly significant role in economic cycles, in some cases as a hedging asset in capital markets.
Bradley Duke – co-CEO at digital assets ETP provider ETC Group – stated:
Once again, it would seem the price of bitcoin, like risk-on equities such as tech stocks, is responding to positive macro data, including the high likelihood of a smaller 25bp increase in the Fed rate, which CME futures traders appear to be pricing with a 98 percent certainty.
Thielen topped things off with:
Institutions are not only buying bitcoin spot. Rather, we are also seeing consistently high premiums for perpetual futures. We interpret this as an indication that faster institutional traders and hedge funds are actively buying the recent dip in crypto markets.
A Lot of Traders Are Getting Hope Once Again
People initially got excited early in the year when BTC rose to $17K, which was about $1,000 more than where it was at the end of 2022.
From there, spikes to $19,000, $21,000, and then $23,000 were all quick to follow.
