Bitcoin’s rally may be fading, but there are three things that are raising hopes for a comeback this year.
Bitcoin’s momentum has been losing momentum lately, which was evident at the 2023 Bitcoin Conference in Miami that concluded last weekend, where less than half of the 2022 conference attendees were present.
Bitcoin has experienced a 58% “jump” since the beginning of the year and has reached as high as $26,500, about half of its November 2021 peak.
What could boost the cryptocurrency, driving it to new highs in 2023? For that to happen, three things would need to happen, according to marketwatch.
The Fed needs to stop the tightening cycle
Bitcoin is not a “safe haven” like gold or cash. It is a risky asset. With the Fed’s signals of interest rate hikes, Bitcoin fell, while with the signals in favor of a pause, it strengthened.
“This is the key catalyst,” notes Riyad Carey, an analyst at Kaiko. “If the Fed pivots, that would definitely be good for Bitcoin,” he added.
The “halving” (halving by half) that usually takes place every four years could give a strong boost to Bitcoin. It is estimated that the cryptocurrency will go through this process in May 2024.
The past teaches us that every time halving approached, Bitcoin experienced a surge.
Companies should feel more “comfortable” with Cryptos
The lack of interest from companies and professional investors is holding back the price of Bitcoin, so a change in this part would support the cryptocurrency.
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