Often it is very difficult to talk about Cryptocurrency without mentioning Bitcoin. This is because of the great influence it exerts on other Cryptocurrencies. Bitcoin is known to set the direction in the market for every other cryptocurrency to follow. Hence, we talk about Bitcoin’s dominance in the market. One of the reasons why investors have been attracted to Bitcoin is because it has been the first invented cryptocurrency with a maximum supply which serves as proof that it is not subject to future inflation. Unlike other Cryptocurrencies, Bitcoin has performed so well from its launch in 2009 up to the present moment. The price has risen from $0.09 to create its all-time high at 69K.
Nonetheless, Bitcoin has performed badly in 2022 with the price staying below $30,000 up to the third quarter of the year. Analysts believe that the crypto market is currently in a bear season which might result in Bitcoin closing the year below 30K. Others believe that this bear season will end in 2022 and that we can expect the price of Bitcoin to surge in 2023.
This work will therefore help you understand why many investors and analysts are currently optimistic that the price of Bitcoin will surge in 2023. You will also learn from this work the two major ways to trade Bitcoin today.
What is Bitcoin
Bitcoin is a virtual currency built on a Blockchain. It was designed to serve as a decentralized means of payment and wealth storage.
How to trade Bitcoin
There are two major ways to trade Bitcoin today such as spot trading and CFD trading.
Bitcoin spot trading involves buying the actual Bitcoin from any crypto exchange, and holding it as an asset in one’s wallet in the hope of selling it in the future when the price appreciates.
On the other hand, trading Bitcoin as CFD involves entering into a contract with Bitcoin CFD brokers to receive as returns the price difference in Bitcoin from one’s entry up to the exit point. This form of trading is usually leveraged which helps the trader maximize his profits.
Price history of Bitcoin
Bitcoin has performed so well from its creation up to the present moment. This digital asset has yielded massive returns from its creation to the present moment. The price has surged from its issue price of $0.9 in 2009 to create a new all-time-high in October 2021 at $69000. However, the price has depreciated so much since then losing over 80% of its value to create a new low in 2022 at 17K.
Why is the price of Bitcoin down in 2022?
Bitcoin has lost so much value in 2022 as a result of the series of aggressive interest rate hikes embarked upon by the Fed and other Central Banks in 2022. The quest to curb global inflation has led the Fed and other Central Banks to tighten their monetary policy and limit the amount of money in circulation by hiking its interest rate. This has deterred massive investment into Bitcoin and other risky assets as investors moved away from the equity market to buying government bonds and investing in the US dollar and other currencies with higher interest rates.
Will Bitcoin surge in 2023?
The price target for Bitcoin in 2023 has become a major subject for discussion amongst investors today. Many crypto traders believe that Bitcoin bottomed in 2022 at 17K and is now on track to recovery. Many analysts believe that Bitcoin will likely reclaim 30K by the beginning of 2023 and will likely close above 60K before the end of 2023.