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Can Bitcoin (BTC) recover in 2023 or is it all over?
The most well-known cryptocurrency and the one with the greatest market cap, Bitcoin (BTC), has seen substantial drops. Experts, however, concur that Bitcoin’s (BTC) days are far from over. Due to its strength and influence, it appears that Bitcoin (BTC) will keep dominating the cryptocurrency industry regardless of the state of the market.
For the very first time ever since the dramatic spike in December 2017, the price of Bitcoin (BTC) reached $19,000 on November 24, 2021.
That price increase was related to the American debut of a Bitcoin (BTC) ETF, but others in 2021 were brought on by developments concerning Tesla as well as Coinbase, respectively.
For instance, the IPO of the largest cryptocurrency exchange in the United States and Tesla’s revelation in March 2021 stating that it had purchased the digital token for 1.5 billion dollars each stoked widespread interest.
This spike in the price also made the crypto market observe spike in investors who wanted to profit off.
Bitcoin (BTC) Performance In 2022
Bitcoin’s (BTC) price was $46,311.74 at the beginning of January 2022 and $37,920.28 at the end of January. Then in the beginning of February, the price of Bitcoin (BTC) increased a little to $44,347 and at the end of February, it decreased to $37,726. In March, the price again climbed to $43,194.5 and in the end increased even higher to $47,062.15. In April, the price was $45,554 and fell down to $38,605 in April end.
Bitcoin’s price (BTC) in May went as down as $28,936.73. In June, the price fell further down to $19,010. In July, the price was $19,274 and in August, the price was $22,626. In September, the price was down to $18,837 and in October, the price went a little up to $19,431. In November, the price of Bitcoin (BTC) was down to $15,883.16.
Bitcoin (BTC) hasn’t crossed $50,000 since December 25, 2021, and during the last six months, it has only sporadically crept beyond $25,000.
Despite the highs and lows, Bitcoin’s (BTC) current price is still a considerable distance from its most recent record high, which it reached in November 2021 once it surpassed $68,000.
Bitcoin (BTC) is still worth and over twice as much compared to just a few years ago, despite the current price decrease. These variations in price are nothing new for Bitcoin (BTC).
Reasons behind Bitcoin’s (BTC) ups and downs
When it comes to cryptocurrency investments, volatility is the sole element that can be counted on, consequently, investors must prepare for increased volatility in the future. Around a year back, the bitcoin price (BTC) varied as far as $68,000, but it is currently down under $25,000 once more.
Read: How to navigate an Unpredictable Market with Bitcoin and Volatility?
Financial advisors and other professionals warn against letting the price volatility of Bitcoin (BTC) influence your investing decisions in the same way they do with any other investment. It’s acceptable to wait and observe how events develop before placing your funds at risk as crypto remains new to the majority of individuals. There is just data dating back about 10 years for making predictions about cryptocurrency prices, and while the price of Bitcoin (BTC) may increase in the long run, it varies drastically on a daily basis. Knowing the “what” and “why” behind any crypto approach can be challenging when markets are volatile.
Finally, a cycle called as halving has a significant impact on the price of Bitcoin (BTC). In essence, halving is a stage inside the Bitcoin (BTC) mining procedure that causes the incentive for mining Bitcoin (BTC) payments to be cut in half. It is complex and algorithmic in nature.
The rate during which new coins are issued is affected by the halving, which may have an effect on the value of present Bitcoin (BTC) holdings. Boom-bust cycles with halvings have previously been connected. After a halving occurrence, some analysts attempt to anticipate such cycles down to the day.
Bitcoin’s (BTC) supply is limited; unlike fiat money like the U.S. dollar, where the Federal Reserve can actually decide to print additional banknotes, BTC has the highest amount built into its architecture, which was reached in April 2021 to a degree of about 89 per cent. Despite more potent mining equipment, it is predicted that Bitcoin (BTC) could run out by 2040. This is due to a feature of mining that was intended into Bitcoin’s (BTC) original design that makes it significantly harder and more power-hungry every four years.
Other Reasons Behind Bitcoin’s (BTC) Ups and Downs
One of the harshest crypto winters ever occurred in 2022 as a result of aggressive rate increases by the US Federal Reserve and a wave of bankruptcy filings in the industry. Retail investors have stepped up their buying in response to Bitcoin’s (BTC) dramatic decline. Apart from the recent meltdown, Bitcoin’s (BTC) problems are a result of the unfavorable macroeconomic environment, which has depressed the market mood all year.
The cryptocurrency market has been in a slump due to the ongoing conflict in Ukraine, inflation, changing US monetary policy, as well as the strength of the US dollar. From its all-time peak in November 2021, the value of Bitcoin (BTC) has decreased by around 80%.
The Final Thoughts: Can BTC touch ATH again in 2023?
You can survive the present crypto winter by being cautious and playing a long-term strategy. There are absolute chances of recovery in 2023. Expect to take a while for your money to be fully recovered because it requires some time for the current value to increase.
During bad markets, some spot traders lose a significant amount of money, but the persistent ones eventually make some, or even all, of it back. Your impulses and thoughts can be handled by exercising patience and self-control.
If history is to be believed, BTC will make a comeback. We have all see BTC crash by 75-80% in every cycle, and coming back stronger. However, Bitcoin touching its ATH, may not happen in 2023. We may see Bitcoin’s price going up this year and the next, and eventually touching ATH by 2025.
Should you buy Bitcoin now?
We are now sitting in January 2023, and we can see a little uptrend in Bitcoin and other cryptocurrencies price.
And since BTC is down by 70%, it makes it a good time to start accumulating Bitcoin. It is time like these, when as an investor one needs to be aggressive, to get and make the most of the return. And when there will be euphoria in the market, and everyone in your locality starts buying Bitcoin, it is time for you to sell.
For anyone who is holding BTC, it should be very rewarding if you continue to hold. If you want to get started with investing in Bitcoin, I recommend using Binance in the USA and WazirX in India.
Also check: Best crypto exchanges in the US
Please remember, it is important to conduct thorough research and have a long-term investment strategy in place. Investing in Bitcoin or any other asset when its prices are going down, also known as “buying the dip,” can be a good strategy if the investor believes the asset is undervalued and has long-term growth potential. Bitcoin has proved itself, multiple times in the past, on how profitable it is to invest in Bitcoin once it is down by 70% or more.
Having said that, it is also important to consider the risk that the asset’s price may continue to decline. It’s always a good idea to diversify your portfolio and not to invest more than you can afford to lose.
Can BTC go to zero?
It is possible for the value of Bitcoin to go to zero, like any other asset, but it is highly unlikely. While the value of Bitcoin can be highly volatile and has experienced significant price drops in the past, it has also had periods of strong growth. Additionally, Bitcoin has a finite supply of 21 million coins, and as the number of available coins decrease as more coins are mined and lost, it may increase the scarcity and the value of the remaining ones.
Bitcoin is a technological revolution and with institutional some investors already on board, there is a very small chance of Bitcoin going to zero. However, having said that, invest only what you should be okay with, if BTC goes to zero.
My thoughts: I am waiting for BTC to touch 20-22kUSD and then dropping in value dramatically to close to 12kUSD, from where the price should keep going up for the next 1.5 years.
Please note: The entire article on “Can Bitcoin recover in 2023?” is an Opinion of the writer, and does not necessarily mean things will happen as told in this article. Please DYOR before investing.