Bitcoin 2023: A Rollercoaster Recovery
After a tumultuous 2022, Bitcoin has experienced a rollercoaster recovery in 2023. The price of Bitcoin (BTC) has seen a gain of over 160% year-to-date. Let’s take a deep-dive into how the BTC price got to where it is now.
January Rally: Slowing Inflation Triggers Recovery
In January, Bitcoin made a strong recovery after a significant collapse in December. This recovery was driven by macro-economic factors, such as indications of a slow-down in US inflation. Despite hopes of a rates cut not materializing, the shift in market sentiment was enough to trigger major upside across 2023.
February’s Dramatic Mid-Month Drop: US Regulators Spook Markets
In February, Bitcoin experienced a major drop in price due to increased regulatory moves against the crypto industry by American regulators. However, bullish sentiment in Asia reassured global markets and fueled a recovery from these dramatic drops.
April’s Bitcoin Resistance Rejection: Testing $30K
In April, Bitcoin tested topside resistance at $30,000 but faced a resounding market rejection. This triggered another tumble in price, but Bitcoin was still able to end the month in the green.
May’s First Monthly Price Drop: Factors Behind the Decline
In May, Bitcoin experienced its first month-on-month drop of the year. This drop was triggered by diminishing liquidity in crypto markets and a market reaction to monetary tightening moves by the US Fed.
June’s Major Short-Squeeze Triggered Rally
In June, Bitcoin resumed its rallying posture as price surged over 28% in just a few weeks. This rally appears to have been triggered by a major short-squeeze that liquidated millions of dollars in short positions.
July Resistance Triggers Major Drop
In July, Bitcoin attempted to breakout above $30,000 but faced immediate market rejection. This led to a major downside tumble, with Bitcoin losing 8.8% across the month.
Max Pain in August: Dramatic Price Drop
In August, Bitcoin experienced a major downside move fueled by dramatic losses in price. The release of damning CME data and the launch of Bitcoin Futures trading for US customers by CoinBase contributed to this drop.
September’s Bounce-Back Above $25,000
In September, Bitcoin found support at $25,000 after fears of FTX crypto assets being dumped onto the market failed to materialize. This triggered a bounce within the trading channel and pushed the price up by 12.1% to touch resistance from the 200DMA.
October: Bitcoin Spot ETF Fever Takes Hold
In October, Bitcoin saw a surge in price as traders panicked and FOMOed into the cryptocurrency following a court decision that overruled the SEC’s previous rejection of GBTC’s conversion into a Bitcoin Spot ETF.
December Sets Stage for Major Bullrun in 2024
In December, Bitcoin experienced a breakout rally with high volatility. The price exploded by 18.35% in the first week of December and reached its high for the year at $44,694 a week later. With YTD gains of over 160%, the market is eagerly awaiting decisions on Bitcoin Spot ETF applications and the upcoming Bitcoin halving event estimated for April 16, 2023.
Hot Take: Bitcoin’s Wild Ride in 2023
The year 2023 has been a rollercoaster for Bitcoin, with significant price peaks and troughs. Despite the challenges and volatility, Bitcoin has managed to recover and achieve impressive gains. The market sentiment has been influenced by macro-economic factors, regulatory actions, and investor behavior. As we move into 2024, all eyes are on the final decision regarding Bitcoin Spot ETF applications and the upcoming halving event. These factors have the potential to shape Bitcoin’s future trajectory and determine whether the bull run continues or takes a different turn.
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