After the bloodbath seen in 2022, most cryptocurrencies began to reverse at the start of the new year. A general increase in risk appetite has proven beneficial for the space.
Bitcoin is joining the party. Bitcoin: BTC / USD, the peak crypto, peaked at $68,789.63 on November 10, 2021, and has been in decline for most of 2022, losing about 64.27%. The decline was much steeper than the broader stock market, but it was in line with top tech stocks. The S&P 500 lost a more modest 19.44%. In comparison, mega-cap stocks such as Tesla and: Meta: It ended the year 2022 with a loss of about 65 percent.
Last year’s bitcoin price decline was largely driven by macroeconomic and geopolitical risks, as well as specific risks to the crypto industry. The fall was swift and heavy. After starting 2022 at $46,311.75, it fell during the first half to $17,708.62 on June 18. The peak crypto, which currently has a market cap of just $400 billion, has since rallied below $25,000.
The crypto retested the mid-June lows in early November and fell to a new low of $15,599.05 on November 21, 2022. It bounced around this floor until the first week of January 2023.
Bitcoin has been in an uptrend since January 8, and on Saturday it broke through the psychological resistance of $20,000, crossing the barrier for the first time since November 8, 2022. It rose to $21,075.14 during the day.
Meanwhile, the new year has brought renewed hope to financial markets, with expectations that subdued inflation and soft economic growth will allow the Fed to slow or even stop raising its fed funds rate. Bond yields, which rose strongly in 2022, have pulled back markedly in the new year on expectations of at least a mild decline.
See also: How to buy Bitcoin (BTC)
Returns from Bitcoin. $1,000 invested in Bitcoin at $15,599.05 in 2022 would be worth 0.064 Bitcoin. A savvy investor who would call the lower right would now have a roughly 37% gain (based on Sunday’s intraday high of $21,075.14) in about three months.
Bitcoin bull and venture capitalist Tim Draper calls for crypto to reach $250,000 by the end of 2023. Skeptics, on the other hand, are still wary and humbled. Despite the recent upward flight, Economist Peter Schiff urged investors to sell bitcoin.
Crypto needs to break the resistance near $21,500 to confirm the strength of the recent rally. Higher on the chart, it has resistance around the $22,600 level.
At last check, according to data from Benzinga Pro, Bitcoin is up 0.15% at $20,898.58 in the last 24 hours.
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