Bitcoin (BTC) to Close Out Best Since 2013 – Price Analysis
Considering an increase of 39.4% in January 2023, BTC is ending the month by emerging the best since a 40% increase in October a couple of years ago and its outstanding performance in January since 2013.
Currently, Bitcoin is changing hands at 22,910 dollars, and BTC has been trading high over the previous week at its highest level since August 2022. However, the leading virtual digital asset has not given investors a good start since a decade ago.
According to an options trader with cryptocurrency market marker GSR, Christopher Newhouse announced, the year started smoothly for Bitcoin with some drastic price actions in the last week of December.
According to Newhouse’s perspective, the customer demand from institutional takers, whether hedge funds or large-scale traders, re-entered in the first couple weeks of the month, igniting the initial short trade liquidations.
Following December’s inflation announcement released last month. 1.3 billion dollars worth of short positions on BTC were settled, or 611 million dollars as net of long positions, according to CoinGlass. Over the previous week, the pattern has changed with 331 million dollars in long positions settled, or 108 million dollars net of short positions.
Investors Regain Trust in Bitcoin
Between January 10th and the 20th, BTC witnessed its highest levels. Following these events, investors re-entered the market, adopting the BTC breakout between 15,700 dollars and 18,000 dollars.
According to Newhouse, BTC drives of over 20,000 and 22,000 dollars were witnessed on Fridays as traders had huge amounts of negative revelations and retailing towards completing United States hours trading.
According to analysts, the next leg for BTC will probably be confirmed in the days following the United States Federal Reserve’s monthly rate hike agreement. The re-entrée of BTC purchasing looks similar to what was witnessed from July through early August.
Can BTC Fight the United States Federal Reserves?
As we commence this new month of February, traders must remain alert and optimistic. But, of course, the biggest challenge will be the United States Federal Reserve policy decision.
With BTC showing steady signs at the beginning of the year, however, we cannot anticipate the rally to be sustainable, keeping in mind the general market conditions, according to a senior analyst at Arcane Research, Vetle Lunde.
In addition, the research and study on BTC amid the decision around the Federal agreement indicates that the behavior of massive FOMC-generated unpredictability in Bitcoin is disappearing.
Although, several analysts are certain that the worst disaster of the digital asset space following the downfall of the FTX could be a thing of the past. Moreover, stocks of digital asset companies also confirmed a strong comeback last month. Shares of the United States-based digital asset exchange Coinbase shot by 65%.
Likewise, the index of BTC mining equities also shot by 77% over the previous month. As a result, BTC and the larger digital asset industry added 280 billion dollars to the cryptocurrency market in one month.
The previous month experienced growth across asset classes like stocks, bonds, and crypto over the anticipation that the United States Federal Reserve would cut down to lower interest rates and would ultimately eliminate inflation cools. However, later in the day, the Federal Reserve of the United States is anticipated to declare the 25-based points interest rate hike.