Will cryptocurrencies make a comeback this year?

Bitcoin manages to recover above $25,000 in February

By Nadia Elbilassy | @Nadia Elbilassy | 2 March 2023

Will Cryptocurrencies make a comeback
Cryptocurrencies 2023
  • Bitcoin's volatile performance returns to markets in 2023

  • The end of the Fed’s tightening could be a key attributer to the recent rise of BTC

  • Cryptocurrency downtrend reverse could be near.

Bitcoin, the world's largest cryptocurrency by market capitalization, experienced a significant drop in value in 2022. While it did see a snapback in February, BTC holders continue to trade with caution.

The recent surge of bullish momentum in the cryptocurrency market could potentially be attributed to the end of central banks' tightening measures and the perceived resilience of the US economy. Reviving hopes for a strengthened market sentiment from a single view.

Last week, Bitcoin managed to recover above $25,000, giving hope to crypto bulls. However, the recovery proved short-lived, as several factors prevented BTC from maintaining its positive momentum.

During the latter half of 2022, Bitcoin mainly traded within the range of $16,000 to $20,000 The cryptocurrency market currently exhibits signs an inflection point between value and sentiment. The outlook for 2023 solely depends on recession or soft landing, keeping in mind cyclical growth factors and returns expected in 2024.

One factor that has contributed to BTC's resilience is the fact that it has largely weathered the third-biggest fraud in history (FTX) in just two months. Bitcoin has shown resilience despite the significant losses suffered by the cryptocurrency industry, lifting the probability that prices may not stay low for an extended period.

As always, caution is advised in cryptocurrency trading, as the market remains volatile and subject to unpredictable events. the uncertain outlook for business growth due to recession fears and volatile stock markets still present risks for cryptocurrencies.

BTC timeline

2017: Cryptocurrency blast x fear of missing out

The highest value ever recorded for Bitcoin was on December 17, 2017, when it reached a price of nearly $20,000 per bitcoin. This was during a period of intense speculation and media coverage of cryptocurrencies, and many people were buying into Bitcoin and other digital currencies in the hopes of making a quick profit.

2018: The surprise collapse after everyone rode the wave

Bitcoin's price declined sharply in 2018, falling below $4,000 at the end of the year. The digital currency remained relatively inactive for the next two years, with a consistent downtrend, leading some to believe that it had failed to establish itself as a mainstream market player. However, it closed out 2019 at around $7,000, suggesting that it may still have potential.

2019: Crypto’s Muted

With many ongoing speculations and the rise of other crypto’s including rising questions about its decentralized market.

Bitcoin closed out the year back to $7000.

2020: The Pandemic Era where crypto’s were back in the game

As more retail investors has more time on their hand, reading about quick profit ways, BTC shined and started to resurge ending the year near $29,0000.

2021: Ultra-loose policy causing a BTC Splurge

BTC surged to $60,000, with the Feds post pandemic ultra-loose policy, an immaculate printing of money fed off retail investors. The crypto currency fell back in May to less than $34,000 and finally reaching its all time high near $69,000.

2022: Hot Red Inflation & Change of monetary policy

The start of the Feds hiking cycle to combat inflation because of the ultra-loose policy, prompting less investment and high borrowing rates, pushing the BTC off edge to collapse to $20,000 by mid-June 2022.

Then came the third biggest fraud of the century FTX, prompting investors to do a quick pull up, leaving the cryptocurrency world including big exchanges questionable.

2023: Rising Speculation for Crypto’s to make a comeback

A long-awaited bull run was able to clear the way for BTC to see a short-lived recovery above $25,000.

Along with BTC, and the rise of cryptocurrencies back into the market, a number of significant coins have gained popularity. Some of them you may have heard of them as they frequently see high volatility as well including.

  • Ethereum (ETH)
  • Dogecoin (DOGE)
  • Solana (SOL)
  • Tether (USDT)
  • Bitcoin cash (BCH)
  • Binance (BNB)
  • Cardano (ADA)
  • Ripple (XRP)
  • Polkadot (DOT)
  • Litecoin (LTC)
Bitcoin holders trade with caution despite February snapback