Bitcoin Hits Fresh 2023 High – What Next?

Bitcoin was trading at $16,500 at the beginning of 2023. It has made a new high of the year by testing the $42,400 level. The investors have already doubled their investments and they’re now expecting a 3x return from Bitcoin. With these remarkable returns, Bitcoin has become one of the best performing assets in 2023.

Some investors are now concerned about whether Bitcoin will continue this journey or the price may decline from here. The following Bitcoin news may provide a reasonable answer to this question.

Factors Behind Bitcoin’s Price Surge

Bitcoin’s price has increased by 150% during the year. Bitcoin’s price dropped from $69,000 following the Federal Reserve rate hikes and the collapse of FTX. However, its price started recovering in the beginning of 2023 because investors moved to crypto due to the worsening situation of tech-focused banks.

The expected approval of spot Bitcoin ETFs is the major driver for the current Bitcoin price surge. The approval of Bitcoin ETFs will pave the way for investors who are eagerly willing to invest in the crypto market. Although Bitcoin’s price has recovered from the effects of the FTX collapse, the liquidity is yet to be recovered.

The upcoming halving event is another major factor in why most investors are reluctant to sell their crypto holdings. That’s why the price of Bitcoin is increasing due to reduced supply. The expectations of a U.S. interest rate cut have also contributed to the recent Bitcoin price surge. As a result, the stock prices of crypto-related firms have significantly increased.

Microstrategy and Coinbase are the leading beneficiaries of this price increase. Bitcoin mining firms including Marathon Digital, Riot Platforms, and CleanSpark have also experienced a positive impact. Bitcoin’s recent ascent is also associated with the growing institutional involvement and abating inflation.

Some investors were worried about the settlement of a U.S. criminal probe into Binance. But most investors gained confidence realizing that the authorities are taking crucial steps to regulate cryptocurrencies.

President of El Salvador Demands Apologies As Bitcoin’s Value Overtakes Tesla, Visa, and Bank of America

With its recent price surge, Bitcoin has become the tenth largest asset worldwide. The asset currently has a market cap of $817 billion and it’s aiming to surpass Facebook which has a market cap of $822 billion. Although the price hasn’t yet surpassed its all-time high, the positive news has spread optimism among market participants.

Nayib Bukele, the president of El Salvador was criticized for adopting Bitcoin as the legal tender. He has now called for apologies from critics while celebrating the country’s profitable Bitcoin holdings. He further emphasized that the country’s Bitcoin strategy won’t be affected by the price fluctuations.

Some analysts think that the market may see a prompt profit-taking following the price increase while others think that Bitcoin will reach the $45,000 level after breaking out of $42,000.

Blackrock and Bitwise Have Again Amended Applications for Spot Bitcoin ETF

BlackRock and Bitwise, the investment firms, have updated their spot Bitcoin ETF applications to meet the requirements of the U.S. Securities and Exchange Commission. There’s an ongoing discussion between investment firms and the SEC. Analysts believe that the updates are a sign that the applications are gradually moving toward approval.

Some analysts have claimed that the SEC will most probably approve a spot Bitcoin ETF before January 10, 2024.

Bitcoin Price Prediction by Bloomberg

Following the recent price surge, Bloomberg analysts have predicted that Bitcoin may exceed the $500,000 mark. It is said that positive macroeconomic trends and increased interest of investors are the factors that contributed to the price surge. Bloomberg analysts are expecting more bullish price momentum for Bitcoin and other cryptocurrencies.

The expected approval of the spot ETFs is the major reason why analysts are expecting that Bitcoin could potentially reach the $500,000 level. The experts say that Bitcoin may experience one of the most substantial surges of its history if Bitcoin ETFs are approved while the Bitcoin Halving is getting closer.

Bitcoin’s Adoption in Swiss City Lugano

The Swiss city of Lugano has started accepting Bitcoin and Tether for taxes and municipal services. The authorities are already working in collaboration with the Tether team to transform the city’s financial system. This is step is a part of the efforts the city government has taken so far.

The users may make these payments through Bitcoin Suisse, the Swiss institutional-grade crypto platform. Bitcoin Suisse is an important service that supports the city’s efforts for early adoption of cryptocurrencies. Lugano isn’t the only city that is working on cryptocurrency adoption but other Swiss cities like Zug and Zermatt have also made similar efforts in recent years.

Bitcoin Weekly Technical Analysis

In the previous Bitcoin weekly analysis, it was mentioned that Bitcoin may find some resistance between $34,400 to $48,400. It was mentioned that it may be an indication of a price reversal if the price struggles in this zone. But Bitcoin’s price is continuously moving toward the upside without showing any significant signs of resistance. So, the price may break out of the $48,400 resistance level over the coming weeks.

But it’s worth noting that Bitcoin Dominance has entered an important zone which shows that Bitcoin may enter a sideways zone for a few days while leaving room for growth for the altcoins.

Conclusion

Bitcoin has reached new heights in 2023, surging from $16,500 to test the $42,400 level, marking a remarkable 150% increase. Various factors, including Federal Reserve rate hikes, FTX collapse, and expectations of spot Bitcoin ETF approval, influenced its volatile journey. The upcoming halving event, potential U.S. interest rate cuts, and institutional involvement also contribute to its rise.

Bitcoin’s global impact is evident as El Salvador’s president demands apologies, and Swiss city Lugano embraces it for municipal services. Amidst speculations of a spot Bitcoin ETF approval, analysts predict a bullish trend, with Bloomberg foreseeing a potential $500,000 milestone.

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