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Is 2023 a year of a second wind for BTC?

Many industries, including cryptocurrency, had a tough year in 2022. Following a long period of the bull market and investor euphoria, last year saw a brutal crypto winter highlighted by the bitcoin drop, corporations’ bankruptcy, and over $1 trillion impoverishment of the crypto industry. However, Bloomberg analytics say that 2023 may be marked by a skyrocket of BTC.

Bloomberg experts believe that 2023 will be a year of growth for bitcoin. Is this, however, the end of the crypto winter? According to Bloomberg Intelligence analyst Mike McGlone, despite a rough year, the value of BTC and ETH will rise dramatically in 2023.

According to Mike McGlone, bitcoin and ethereum will outperform other assets, but they will still be impacted by the stock market drop. Also, he was quite surprised that ETH could rise in such an unfavorable economic climate.

Furthermore, he noted that ETH has risen 12 times faster than other cryptocurrencies over the last three years. Because of the Merge, its developers have given the token a bright future. Despite its dip at the end of 2022, McGlone expects bitcoin will return to growth this year.

Bitcoin surged by over 28%, the fastest first-month recovery since the 31% increase in 2020 before Covid-19. Other altcoins are also seeing price hikes. Indeed, Ethereum has crossed $1500, increasing by 3.4% in the previous 24 hours and 22.9% in the last week.

What factors affected the cryptocurrency market in 2022?

The demise of cryptocurrencies coincided with the decline of the stock market and, in particular, the new technology sector. At the end of the year, the leading technology index NASDAQ Composite plummeted 33%. Katie Wood’s ARK Innovation fund, which evaluates startups with growth potential, lost 67%, outperforming the crypto market’s collapse.

Furthermore, the fundamental cause for these drops is the Fed’s and other important central banks’ rapid hike in the key rate.

Markets and economies, including cryptocurrency, have entered a negative period since the Fed started hiking rates and dumping assets off its balance sheet. The market was under pressure, and there was an outflow of liquidity.

After all, what are the broad prospects for cryptocurrencies, and will they be able to separate from macroeconomic sentiment? This would allow cryptocurrency to become a legitimate inflationary hedge. Unfortunately, this has not occurred thus far.

However, last year was one of the worst in cryptocurrency history. The market capitalization fell from $2.2 trillion to only $0.8 trillion. The previous year has seen a sustained decrease in bitcoin and altcoins, an economic crisis in many economies, and unprecedented activity by various sorts of fraudsters.



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