After a turbulent year, Bitcoin (BTC) investors are watching how the flagship cryptocurrency will perform in 2023. Notably, as we enter the new year, Bitcoin is still operating in a high inflation environment, which puts the asset’s value over 70% from its all-time high of almost $69,000.
Is Bitcoin a good investment for 2023?
Looking back to 2022, Bitcoin was among the worst performing assets. According to a previous Finbold report, Bitcoin was the worst performing financial market asset in 2022, with -60% returns.
Indeed, Bitcoin looks set to end the year in a consolidation phase after failing to capitalize on a recent relief rally inspired by positive macroeconomic factors. At the same time, Bitcoin has also been pressured by crypto industry scandals such as the collapse of the FTX trading platform.
Bitcoin price analysis
At press time, Bitcoin was trading at $16,490 with a daily correction of about 0.3%. Year-to-date, the first digital asset has dropped almost 65%.
Bitcoin YTD price chart. Source: Finbold
What does 2023 mean for Bitcoin?
Undoubtedly, Bitcoin investors will be looking at how macroeconomic factors work and how the possible Federal Reserve turns in 2023. For example, David Kemmerer, CEO of CoinLedger, a crypto tax software, believes that Bitcoin will likely correct further within the first. Half of 2023 expects the effects of the FTX collapse to spread further.
At the same time, the Bitcoin community hopes that the current consolidation phase could lead the price to drop and lay a foundation for the asset to recover. Interestingly, there are signs that Bitcoin may be ready for a new rally, given that the asset is recovering faster than other capitulation events after the FTX crash.
Also, while searching for the bottom, Bitcoin could correct up to $9,000. Specifically, the level served as a foundation for the last bull run.
However, as reported by Finbold, the cryptocurrency community on CoinMarketCap remains bullish on Bitcoin price. The community predicts that Bitcoin will likely trade at $19,640 on January 31, 2023.
Disclaimer: The content on this site should not be considered investment advice. Investment is speculative. When investing, your capital is at risk.