Bitcoin has not been in a very strong position throughout 2022, and now that the year has come to a close, many people are wondering what 2023 holds in store for the original cryptocurrency.
Bitcoin’s performance during the New Year’s period is of particular interest due to the fact that it may set the stage for the rest of the year, and as you are going to find out today, Bitcoin might finally be getting the break it needs.
In this article, we will be taking a look at the current BTC price and seeing how it changed throughout the New Year period, as well as extrapolating the results to give us an indication of what we might see from Bitcoin this year. Let’s get straight into it.
A Small But Noticeable Upwards Trend
For all of you bitcoin investors out there, we may have some good news. Over the New Year’s period, bitcoin experienced a small but noticeable increase in value, and this may give some evidence to suggest that 2023 is going to be a much better year for bitcoin when compared to 2022.
Of course, there are no guarantees in investing – this should be a concept that you are more than familiar with if you have been in the investing scene for any reasonable length of time.
There are a plethora of factors that have had an impact on its price, and the fact that bitcoins value is currently on the rise after New Year might not be the ray of light that crypto investors are looking for.
However, bitcoin’s current performance can certainly give a glimmer of hope to those who want to see bitcoin return to its former glory. Only time will tell whether or not this upwards trend will continue and whether it will break its previous ATH (All Time High)..
Any Differences Are Not All That Impactful
While bitcoin’s increase in value is most definitely going to be taken as a good omen by most, there are a few extra factors you need to consider before you start liquidating your portfolio. New Year has historically been an incredibly prosperous period for crypto as well as all investments, and the fact that bitcoin has seen a rise is only in line with most of its competitors.
Almost all of the top ranked cryptocurrencies experienced growth during the New Year period, as this is the time when people are the most likely to invest due to New Year’s resolutions and promises. That goes without even mentioning people’s general willingness to spend money during the New year’s holiday – this is one of the few times of the year when people just allow themselves to splurge.
Whatever the reasoning may be, bitcoin’s growth is not as impressive as you may first suspect. You most definitely do not want to base any of your decisions when it comes to buying/selling bitcoin on the small increase in value it experienced during the New Year’s period.
The difference in value really is minuscule, and when you pair this with the fact that the vast majority of the reasons as to why bitcoin rose in value were nothing to do with bitcoin, it just becomes all the less significant.
What Does This Mean For Investors?
So, what does bitcoin’s increase in value mean for you and I? Well, as we have already explained, not so much. Barring the several external factors that could have had a positive influence on bitcoin’s price, the value increase it experienced is still minuscule at best, and there is next to no evidence to suggest that bitcoins price increase was due to increased demand.
However, just because the New Year’s period might have not impacted bitcoin as much as some would like is not to say bitcoin is in a bad position. On the contrary; bitcoin looks to be in much better shape when compared to the state it was in just a few months ago, and it seems as though the upwards trend it is currently on might be set to stay.
While we can never say for sure what the markets have in store, bitcoin is looking incredibly promising in the early months of 2023. we can’t wait to see where it ends up.
We hope we have been able to give you a better insight into how Bitcoin’s price changed over the New Year’s period. While any changes are minimal, there certainly is an upwards trend taking place with bitcoin’s value, and this may be able to give us an indication that bitcoin is finally beginning to gain the investor confidence it needs.
However, to play devil’s advocate; there are numerous reasons why bitcoin’s price went up, most of which have nothing to do with bitcoin at all. Most cryptos saw an increase in value over the new year period and bitcoin was already in green before New Year’s came, meaning this period might have had little to no effect on price.
We will just have to wait and see to find out if bitcoin is on the road to recovery. There just isn’t enough data on hand to suggest that Bitcoin’s value increase over New Year’s is of any significance.