Bitcoin, the world’s largest digital currency, has been thrust back into the spotlight as its price has gained nice momentum in the autumn of 2023. The cryptocurrency market had fallen out of favour among a lot of investors after the crash of 2021 and 2022. However, this young market has demonstrated volatility throughout its run.
The price of Bitcoin rose above US$30,000 for the first time since the spring of 2022. Recent history shows that when Bitcoin does enter a bull market, it can climb very quickly. That is reason enough for investors to start paying close attention to the crypto market.
Bitcoin is not alone in gaining momentum. Ethereum, the second largest cryptocurrency by market capitalization, was trading just under US$1,800 at the time of this writing. Ethereum also succumbed to the crypto crash of 2022, but it has shown solid price stability since the end of April 2023. Crypto bulls will want to see Ether get across the US$2,000 price point as it has encountered resistance there since it fell below that level in the spring of 2022.
Cryptocurrencies have historically performed well when established investment institutions jump on the crypto bandwagon. In 2023, there were signs that the U.S. will soon permit a Bitcoin spot price-based exchange-traded fund (ETF). Over the past week, one futures-based Bitcoin ETF posted a significant uptick in inflows. This could be a sign of bigger things to come for Bitcoin and its crypto peers in 2023 and beyond.
