The cryptocurrency market has attracted the attention of investors and experts since the beginning of this year. The highlight is Bitcoin, which has been recording an upward trend since January and is already offering a return of 26% in 2023.
This is the best start to the year for the bitcoin price since 2020, when the first monthly return was 31%. BTC price recently surpassed $21,000, a level it has not reached since November 2022.
Part of the price increase was attributed to the fact that the US inflation figure for December 2022 was 6.5%. This less stressful scenario encouraged investors who believe in the resumption of growth in risky assets.
Measures to contain inflation in the United States succeeded in slowing price growth in the second half of 2022. Thus, the year ended with a loss of 63% for Bitcoin.
Three bullish signals for Bitcoin
However, the bullish start to the year and the aforementioned 26% return so far has pushed the cryptocurrency market cap past the trillion dollar mark, which is another huge bullish sign.
According to many analysts, this year is seen as one of positive returns, considering that Bitcoin has not had two consecutive losing years in its history. A third bullish indicator has been published by Glassnode, highlighting the similarity of the 2018-2019 downtrend cycle to the 2021-2022 cycle. With the recent rally, the price has crossed the 200-day moving average.
According to historical Bitcoin price data, since 2013, January has been a month of mostly negative returns, so much so that out of the 11 that were recorded, 6 were losses, according to data from Coinglass. The positive return years were 2013, 2014, 2020 and 2021 plus the current month of January 2023.