4 Main Reasons For The Incredible Growth Of Bitcoin In 2023
The main cryptocurrency of the world in 2022 disappoints investors. The bitcoin exchange rate has been growing rapidly since the fall of 2020, when the world economy was adapting to working conditions during the COVID-19 pandemic, but began to collapse amid a reduction in state programs to support businesses and citizens. In six months, bitcoin has fallen in price more than twice. Investors who invested in it and other cryptocurrencies, including Ethereum, lost significant amounts. Some experts predict a further decline in the market due to the efforts of the authorities to regulate the industry, financial problems for miners, and the disappointment of those who have already lost money.
However, the night of February 16 saw the highest BTC exchange price upgrade in half a year, surpassing $24,700. The cost of the leading cryptocurrency has surpassed $24,500 for the first time since August 15th, and now can be compared to the cost of Pacific Precious Metals. Capital went into risky assets amid a decrease in concerns related to inflation in the United States and pressure from regulators.
Experts explained the increase in the first cryptocurrency’s cost. There are at least four reasons for it. And also try to predict whether further growth to $30,000 is possible.
A small transformation in the crypto business remains without the attention of the general public. Launched at the end of January, the Ordinals protocol lets you move digital items on the Bitcoin network. Before this, the field of application of the main cryptocurrency focused exclusively on conducting financial operations. Currently, because of the possibility of sequential numbering of Satoshi, users can exchange any digital items, no matter if they are audio, video files, or images.
Despite several limits, the high cost, and the lack of exchange sites, the quantity of ordinals has exceeded $100,000.
The explosive growth of attention to ordinals caused a rise in the network activity, an upgrade of the record for the number of non–zero wallets to 44 million, and an increase in commissions. Miners received $876,000 of additional earnings in less than a month.
In 2021, Bitcoin was actively criticized for being unecological, predicting a bright future for PoS coins. However, in 2023, PoS–coins are threatened by the security status, and businesses associated with cryptocurrency exchanges have to abandon the partnership.
American regulators consider PoS coins as toxic assets due to receiving passive earnings from staking. BTC, whose fate is still connected with the work of miners, remains the winner. The hash rate of the network maintains breaking records.
In 2022, BTC was oversold due to the liquidation of several crypto initiatives, and the typical price of production dropped below the industry price. To maintain business, the vast majority of mining businesses were obliged to liquidate their stocks.
BTC traded below its realized cost for the second half of the year, while the fair value (realized price including retention) according to some calculations is $33,000.
The Third Growth Phase
Many experts are confident that the crypto industry is in the third phase of growth. It started several weeks ago, on February 14, and exceeded the previous one’s highest indicators shortly.
The third stage’s target range is $27–28,000. Further corrections are predicted, followed by the final fifth wave of Bitcoin cost growth, which is predicted to range between $30,000 and $32,000.
Comparable to bitcoin, other virtual currencies are in their third phase of price rise. A few of them, though, have not yet upgraded the first wave’s highs, indicating that there is still space for improvement.
The term “wave analysis” is used to describe the so–called Elliott idea, which holds that an asset’s price fluctuates in ascending and descending waves. Following the principle, once costs exhibit a serious shift and become the major focus of a tendency, the third phase of the price indicates the condition of the whole industry.
Will Bitcoin Reach $30,000?
The market players‘ ongoing increase in demand for the asset as well as Tether’s upcoming major issue of the USDT stablecoin were the main drivers of the price increase for BTC. The over–the–counter (OTC) industry has seen several significant BTC transactions over recent days, which has increased investor activity.
The industry capitalization of the remaining digital currencies also increased in the context of increasing BTC prices. Currently, recent declines against the backdrop of American inflation expectations do not outweigh cryptocurrencies.
According to professionals, the BTC price will soon be capable of reaching $27,000. It will be possible to predict whether it will be capable of reaching the level of $30,000 in February or if it will take much longer based on how prices behave at this point.