no one really knows what’s going on

Talking about cryptocurrencies is talking about promises. Promises that are not always kept. Bitcoin came to sink to 2020 levels, losing more than half of its value and dragging with it a huge crisis within the crypto territory. But everything that goes down can go up again, and the start of the year for Bitcoin is off to a strong start. It returns to $20,000, starting a recovery that aims to be sustained.

Back to $20,000. At the time of writing this article, Bitcoin is priced at $20,800. The 20K resistance seemed unbreakable, and we had not seen BTC above it since November 2022. These figures represent an increase of more than 20% since January 1, having momentarily exceeded 21K

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Recovery after a tragic fall. Bitcoin had been in free fall since mid-2022. It was far from its peak of $66,000 in October 2021, although it achieved stability between 40 and 45K during the past year. Everything changed from March 2022. Bitcoin began to collapse, with a tragic June in which it was seen below $20,000. Since then it has remained in that line, closing 2022 quite tragically and falling back to even below 16K.

The crisis had consequences. The Bitcoin crisis was accompanied by important events in the crypto world. Layoffs at Coinbase, side effects in mining, doubts about the future of Binance and the bankruptcy of large exchanges like FTX as an indicator that something was happening.

And urgent Bitcoin exits. Even Tesla, which announced in March 2021 that buyers of its electric cars could use Bitcoin in the process, ended up curbing its enthusiasm and selling 75% of the bitcoins it had bought to stem losses. Musk indicated that the sale was due to the uncertainty due to the confinements of the COVID-19, and that the important thing at that moment was to “consolidate the position of cash”.

Between optimism and uncertainty. The price of Bitcoin is a small call for calm. The rally has benefited other cryptocurrencies such as Ethereum, which is up close to 10%. Others, like Solana, got on the rally shooting more than 30%. The experts They point out that there has been a constant rise since the beginning of the year and that breaking the $20,000 resistance again “has removed some ceilings”, this figure being a key level for the evolution of Bitcoin in 2023.

The small truce that the IPC is giving in the UStogether with the announcement that FTX has recovered 5,000 million liquid assets they are not enough to explain the sudden rise of Bitcoin, whose evolution remains unpredictable.

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