The bitcoin boom continues as more time in January was able to bring the world’s number one digital currency by market cap beyond the $19,000 mark, something the currency hadn’t seen since November of 2022.
Bitcoin Is Growing Like Crazy
January has brought on a certain degree of healing for most digital currency investors and traders. The previous 12 months had been so disastrous for bitcoin, literally eliminating more than 70 percent of its overall valuation. The currency had been trading at a new all-time high of about $68,000 per unit in November of 2021, and things looked stellar.
However, over the following year, bitcoin and the crypto space would bear witness to some of the worst conditions they’ve ever faced. Record-high inflation, an alleged war in Ukraine, and disastrous economic policies invoked by the incompetent Biden administration would ultimately break and shatter the crypto space like never before, and we saw many examples of hard hits against bitcoin and crypto.
But with the new year has allegedly come a new bitcoin. Just a day or so ago, we talked about how the currency rose beyond $18K, and many felt that this was a positive note to start off on given that 2022 ended with BTC trapped in the mid-$16K range. However, things didn’t quite stop there, and the world’s primary form of crypto rose another $1,000, thus bringing its total January 2023 spikes to about $3,000. What a great start!
Thus far, it looks like 2023 is serving as the 2019 to 2022’s 2018. In other words, we are seeing the same patterns now as we did in 2018 and 2019.
Vijay Ayyar – vice president of corporate development at crypto exchange Luno – commented that all the negative events of the past several months have likely been priced in already, and bitcoin is learning to live with the fallout of FTX and the many other negative points of 2022. He stated in an interview:
Bitcoin has been in a downtrend for over a year now, which is a standard period of a bear market in crypto. We’ve had many negative events transpire over the past year, and if one looks at the price reaction to those events in general, it’s been declining less and less, an indication that the market is accepting the news quite well, sell pressure is being absorbed, and hence, we’re moving to an accumulation stage. This could also mean that the market thinks the worst is over for crypto and that most negative news is now priced in.
Inflation Is Dying; Could Another Bull Run Arrive?
In addition, a report detailing the latest inflation activity in the United States and surrounding countries has been declining steadily.
With fewer price and rate hikes scheduled for this year, perhaps the road is being paved for another bull run.
