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A new report shows that bitcoin had its best January since 2013 (ten years). The currency rose nearly 40 percent and contributed a $7,000 increase to its price.
Bitcoin Posts Its Best January Results Since 2013
Bitcoin is having its worst year (arguably) in 2022. After hitting a new all-time high of $68,000 per unit in November 2021, the world’s number one digital asset by market capitalization began to take a bearish path that eventually saw it lose more than 70 percent of its value within 12 months. The currency ended 2022 at mid-$16k, and there are several other assets following its lead. This contributed to a decline in the value of the crypto space by more than $2 trillion in less than a year.
Since January 2023 it first entered the fray, the asset has experienced several bullish trends which caused its price to spike somewhat in the previous weeks. While things are not far from their highs in 2021 and there is still plenty of room for recovery, this asset gives a lot of hope to traders that it may still be able to come back and become a top tier trading tool once again.
Markus Thielen – head of research and strategy at digital asset service provider Matrix Port – commented in a recent interview:
Bitcoin is up +40 percent this year, with +35 percent of those returns occurring during US trading hours. That’s 85 percent of the rally attributable to US-based investors.
Nathan Thompson – a lead technology writer at crypto exchange Bybit – also put his two cents into the mix, mentioning:
A more measured increase in interest rates globally leaning towards stability will lessen the drag as BTC heads to new highs, but overall, investors are more — mentally and portfolio — ready than ever to deal with volatility. The broader implication is that these moves reflect BTC’s increasingly significant role in economic cycles, in some cases as a hedge asset in the capital markets.
Bradley Duke – co-CEO at digital asset provider ETP ETC Group – stated:
Again, it appears that bitcoin prices, like riskier equities like tech stocks, are responding to positive macro data, including the high probability of a smaller 25bp Fed rate hike, which CME futures traders seem to be pricing in. with 98 percent certainty.
Thielen ends with:
Institutions don’t just buy bitcoin spot. On the other hand, we also see a consistently high premium for a sustainable future. We interpret this as an indication that faster institutional traders and hedge funds are actively buying into the recent dips in the crypto market.
Many Traders Gain Hope Once Again
People were initially excited at the start of the year when BTC rose to $17K, which is $1,000 more than at the end of 2022.
From there, spikes to $19,000, $21,000, and then $23,000 all followed quickly.
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