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In short: Is crypto winter showing any signs of ending? Despite the fact that the prices of most tokens are far from what they were at the beginning of last year and many companies are laying off workers, from the beginning of 2023. Bitcoin experienced a small jump, reaching its highest level since November.
Bitcoin finally broke the $20,000 mark over the weekend after falling below that goal since early November. BTC is currently worth $21,161, and while it’s down from around $20,000 less than 12 months ago and far from the all-time high of $69,000, it’s still a positive sign for investors who have endured the cryptocurrency’s toughest year yet.
Last year’s crypto winter started when TerraUSD collapsed in May, which was compounded by the collapse of the FTX exchange. In addition to falling prices of digital assets, including NFTs, the industry has seen lawsuits, bankruptcies and thousands of jobs lost over the past year.
Some analysts fear that the situation could worsen in 2023 and Bitcoin is predicted to fall to $10,000 or even $5,000. Others are more positive, believing that BTC will recover to $50,000 this year. One very bullish venture capitalist thinks it will reach $250,000, an increase of about 1,400%.
With Bitcoin on the rise, it’s starting to look like the naysayers may be wrong. CNBC reports that analysts attribute the recovery to several key factors, the first of which is the likelihood that central banks will slow the pace of interest rate hikes or even cut rates as inflation slows — the consumer price index fell 0.1% in December. .
Another important factor is said to be “whales”, those who buy a large amount of BTC: a total of 97 wallet addresses control 14.15% of all bitcoins. Crypto data firm Kaiko writes that the recent increase in average transaction size indicates renewed confidence among whales in the market.
Another influence is said to be the halving, an event that occurs every four years when the reward for mining bitcoins is halved. This is expected to push the price of BTC higher, and although the next halving won’t happen until 2024, it already instills more confidence in the future among investors.
The reality, of course, is that the cost of Bitcoin is unpredictable. Any revival is good news for buyers and sellers, there are many positive signs and it looks like we are past the worst of the crypto winter, but things can change very quickly in the crypto world.
In short: Is crypto winter showing any signs of ending? Despite the fact that the prices of most tokens are far from what they were at the beginning of last year and many companies are laying off workers, from the beginning of 2023. Bitcoin experienced a small jump, reaching its highest level since November.
Bitcoin finally broke the $20,000 mark over the weekend after falling below that goal since early November. BTC is currently worth $21,161, and while it’s down from around $20,000 less than 12 months ago and far from the all-time high of $69,000, it’s still a positive sign for investors who have endured the cryptocurrency’s toughest year yet.
Last year’s crypto winter started when TerraUSD collapsed in May, which was compounded by the collapse of the FTX exchange. In addition to falling prices of digital assets, including NFTs, the industry has seen lawsuits, bankruptcies and thousands of jobs lost over the past year.
Some analysts fear that the situation could worsen in 2023 and Bitcoin is predicted to fall to $10,000 or even $5,000. Others are more positive, believing that BTC will recover to $50,000 this year. One very bullish venture capitalist thinks it will reach $250,000, an increase of about 1,400%.
With Bitcoin on the rise, it’s starting to look like the naysayers may be wrong. CNBC reports that analysts attribute the recovery to several key factors, the first of which is the likelihood that central banks will slow the pace of interest rate hikes or even cut rates as inflation slows — the consumer price index fell 0.1% in December. .
Another important factor is said to be “whales”, those who buy a large amount of BTC: a total of 97 wallet addresses control 14.15% of all bitcoins. Crypto data firm Kaiko writes that the recent increase in average transaction size indicates renewed confidence among whales in the market.
Another influence is said to be the halving, an event that occurs every four years when the reward for mining bitcoins is halved. This is expected to push the price of BTC higher, and although the next halving won’t happen until 2024, it already instills more confidence in the future among investors.
The reality, of course, is that the cost of Bitcoin is unpredictable. Any revival is good news for buyers and sellers, there are many positive signs and it looks like we are past the worst of the crypto winter, but things can change very quickly in the crypto world.
