According to Forbes, Bitcoin price has gone down to the bottom since last year thanks to various reasons such as the catastrophic “crypto winter”and the ongoing geopolitical crisis. However, at the beginning of 2023. The Bitcoin price seems to skyrocket.
Bitcoin Price Skyrocketed
Cryptocurrency has recovered from the steep declines late last year. And Bitcoin price is up on Jan. 20, and a swift market-wide rally in crypto prices has some investors hopeful that the year-to-date high at $21,427 is a sign that BTC $23,634 has bottomed.
Although crypto lender Genesis filed for bankrupcy not long ago, Bitcoin price continues to rise. The rise in Bitcoin price after Genesis filed for bankruptcy may reflect that the news was already priced into Bitcoin. As we know so far, Bitcoin has reached more than $23,000 on CoinDesk by the time we check.
According to Forbes, Bitcoin price had climbed roughly 50% from the $15,600 that it reached in November last year.
According to CoinDesk, Bitcoin is a type of digital asset that uses public-key cryptography to record, sign and send transactions over the Bitcoin blockchain. Bitcoin is the first decentralized cryptocurrency in the world. Bitcoin was launched in January 2009 by “Satoshi Nakamoto”. Bitcoin can be used to transfer value over the internet or act as a store of value like gold and silver.
The Reason That Causing The Bitcoin Price Pump
Inflation and The Rising Cost of Production
Due to a series of events we have experienced last year, the West is facing serious inflation these days, which pushes people to look for safe-haven assets. To deal with the inflation and rising cost of production, a lot of people intend to move out of the dollar and into assets, (such as Bitcoin) that have historically held their value or even appreciated. The assets people exchange dollars for to protect against inflation or market volatility are usually scarce or less volatile.
According to CoinDesk, the White House published a statement on last Friday, calling on Congress to “step up” crypto regulation efforts and “expand regulators” powers to prevent misuses of customers assets. Analysts think that Bitcoin (BTC) is having its best start to the year in a decade and the price by market capitalization has jumped 40% this month amid weakness in the U.S. dollar.
Investing in cryptocoins or tokens is highly speculative and the market is considerably unregulated. Any investor who consider this digital currency should understand the risk.