The Bitcoin price experienced a sharp drop in price with the implosion of the FTX crypto exchange a few weeks ago. The price has stabilized in the last few weeks and has now risen again to $17,000. The big crash seems to be over. But when will we see a sharp rise in the Bitcoin price above $20,000 again? Is the Bitcoin crash over?
How did Bitcoin Perform in the last few weeks?
In the last few weeks, the Bitcoin price has seen significant stabilization again after the FTX crash. After the crash of the FTX crypto exchange, the price fell below the $16,000 mark and was then moving in the direction of $15,000. These were the lowest bitcoin prices in 2022.
In the last few weeks, the price has stabilized again above the $16,000 mark. The course settled between the values of 16,000 and 17,000 dollars. Most recently, the Bitcoin price was briefly able to rise above the $17,000 mark again. This could be a sign that the price could still rally towards $20,000 in December.
Has the bear market bottomed out?
Bitcoin may have reached its low for the current bear market after the FTX crash. We had already seen this low in June 2022, when the price fell below $18,000 for the first time in 2022. But the unexpected crash of the FTX crypto exchange triggered such a sharp drop in the price that Bitcoin fell even further.
It might actually be the low this time. Because the year 2023 could see sustainable price increases again. There are a few reasons for this:
- Before the crash, there were some positive market signals and external factors such as declining inflation support a positive trend.
- The drop of over 75% from the all-time high was similar to that seen in recent bear markets.
- The year 2023 could be the equivalent of 2019 when the bitcoin price surged from $3,500 to $10,500 midway through the year. The courses of the two bear markets are very similar.
When can the Bitcoin price rise again?
December could be another stronger, bullish month. From a historical perspective, we can expect slight increases again especially towards the end of the year. But whether it will be enough to climb above the $20,000 mark is difficult to say.
However, a price increase in 2023 should be much stronger. If we see a similar development as in 2019, the Bitcoin price could rise to a value above $40,000 again in the coming year. The course could possibly approach the $50,000 mark again.
Is Now a Good time to Buy Bitcoin?
The price of bitcoin is probably particularly low at the moment if we look at the big picture. The interest of many people in the crypto market has waned in recent months due to the very low prices. But there was a similar situation at the turn of the year 2018 and 2019. The Bitcoin price fell to $3,500 and many investors who had invested in the big bull market at the end of 2017 lost interest.
If the current market phase actually means the low for the Bitcoin price, now would be an ideal opportunity to buy the Bitcoin. How long the window of low prices will last is difficult to say. A further drop in the Bitcoin price below $15,000 is possible, but unlikely.
Is Bitcoin a Hedge against Inflation?
Many economic experts are predicting a coming recession. This scenario in particular would be an important test for Bitcoin. Can the cryptocurrency play by its own laws again and is a difficult economic situation preventing a price increase for months and even years?
However, should the Bitcoin price continue its known cycles, it would be a unique opportunity to invest, especially in a crisis. We cannot know when the Bitcoin price will rise again. However, the next few weeks around the turn of the year could be more exciting than they have been for a long time.
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