The global crypto market had a heyday in 2021 when its market cap briefly topped $3 trillion. However, a poor 2022 in which Bitcoin experienced multiple flash crashes left the market cap at the end of the year at only $900 billion. The market’s situation was infamously dubbed the ‘crypto winter’, a term used to describe a prolonged bear market.
Furthermore, high-profile crypto firm collapses, bankruptcies, and liquidations exacerbated the situation and eroded investor sentiment in the crypto market.
But the first quarter of 2023 brought about some positive changes. During the period, Bitcoin crossed the $30,000 mark after trading around $16,500 in early January. Meanwhile, Ethereum’s value also touched $2,000, nearly doubling from its June 2022 close of $1,071.
Even altcoins like Dogecoin and Shiba Inu have had their moment in the spotlight and rallied alongside the leaders. So, this brings us to the next question: Is the crypto winter really over? Here’s what top analysts have to say about Bitcoin’s prospects this year.
Are bullish bets back for 2023?
The financial sector in the US experienced turbulent times and had a rough start in 2023. The unprecedented collapse of three crypto-friendly banks in early March, particularly Silicon Valley Bank, Silvergate Bank, and Signature Bank made matters worse and prompted further regulatory scrutiny.
However, the price of Bitcoin and other top cryptocurrencies mostly remained steady during these events. This begged the question – Was the downfall of these banks caused by a drop in crypto prices or was there more to the story?
According to Standard Chartered analyst Geoff Kendrick, the recent banking crisis in the US would actually have a positive impact on Bitcoin and reinforce its concept as a decentralized and scarce asset.
The analyst indicated that Europe’s push for regulation is a positive development and should provide a tailwind for crypto. He believed that the much-touted crypto winter is finally over and that Bitcoin could touch the $100,000 figure by 2023 end.
Similarly, analysts at New York-based investment bank H.C Wainwright also declared that the crypto winter is over. Analyst Mike Colonnese even said that the crypto market had already entered its bull price cycle, with significant growth in crypto global market cap, institutional adoption, and increasing trading volumes.
He backed his statement by saying that bullish sentiment has also increased due to the next Bitcoin halving event, which will take place in April 2024.
In fact, the three halving events that have occurred to date have had a favorable impact on Bitcoin prices, with the first resulting in a price increase of up to 100 percent. This month, financial services provider JPMorgan also predicted that Bitcoin prices would reflect an uptrend due to technical changes called “halving”.
Meanwhile, US Senator Ted Cruz, a Republican from Texas, expressed his enthusiasm for Bitcoin’s recent recovery at the Bitcoin Policy Summit in Washington DC in February.
He stated that Bitcoin has maintained its dominance and disclosed that he purchases Bitcoin on a weekly basis. He also mentioned that he had taken advantage of recent market drops to increase his digital asset holdings.
While talking about general market movements, a well-known trader, Henrik Zeberg, took to Twitter to claim that every price drop was not a crash and believed that the declining prices presented an opportunity to increase long positions.
Although the trader made this statement in reference to a chart of the NASDAQ 100 stock index, he previously shared the same opinion about Bitcoin. When Bitcoin dropped by 9 percent a few weeks back, he tweeted that it was a chance to capitalize on a discounted price by going long. He maintained a bullish view by predicting that the cryptocurrency sector will rally over the summer.
Conclusion
According to recent statements, yes, the crypto winter could finally be over. Analytics firm Santiment also remarked that Bitcoin's price is looking healthy from a fundamental standpoint and there are several reasons to be optimistic. Does this imply that the crypto spring will arrive soon? That is a long shot, to say the least.
Bitcoin’s price remains below crucial levels, and whether or not spring follows will be determined by its capacity to continue ascending the charts in the next months.
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