January 2023 – A Blessing for Bitcoin
Bitcoin long awaited a time to re-shine which came only in January 2023 after facing 13 cruel months since November 2021.
It wouldn’t be wrong to suggest that January came as a blessing not only for the crypto economy but especially also for Bitcoin.
Within this month alone, Bitcoin saw the ‘Crypto Fear Index’ turning into ‘Greed’. The general sentiment now is that Bitcoin’s rise would like greatly favor investors and holders of Bitcoin.
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Record-Breaking Gains in January 2023
Statistics indicate that Bitcoin’s value swelled up significantly in the month of January. For instance, against the greenback, Bitcoin saw its value increase approximately by 38%.
Furthermore, January also allowed Bitcoin to see its value go as high as $23,954, which was reportedly Bitcoin’s 30-day high. Though soon after hitting a 30-day high Bitcoin’s value dropped to $22,988 yet it kept the momentum going.
Substantial Change in the CFGI
Drastic and rapid change was also witnessed in the overall Crypto Fear and Greed Index (CFGI) which turned into ‘Greed’ from ‘Extreme Fear’.
A week prior to CFGI turning into ‘Greed’, the same Index was tracking in the ‘Neutral’ zone with 50-point scores.
Thereafter, a week later, the CFGI index was seen moving ahead with 61-point scores and enabled a shift from the ‘Neutral’ zone into the ‘Greed’ zone. At that very point, the Greed zone kicked off the phenomena widely known as ‘correction’.
This literally means that Bitcoin, in its present state, is undergoing substantial correction leading to enormous recovery.
Crucial Time Factor between Zone Switching
It may be noted that it took longer than a while for Bitcoin to turn the CFGI into a ‘Greed’ zone. Currently, the coin is keeping intact the index Greed for the past more than 45 days.
Similarly, it took more than a year for Bitcoin to finally come out of the ‘Extreme Fear’ zone and step into the ‘Neutral’ zone.
Shockingly, it took less than 10 days for the coin to switch Neutral zone into the Greed zone. This phenomenon happened during the period between the 14th and 23rd of January 2023.
The only time in which Bitcoin looked weaker against the greenback was on 30th January 2023. Otherwise, from the 1st of Jan to the 29th of Jan, 2023, Bitcoin showed enormous strength.
Factors That Substantially Reinforced Investors’ Confidence, Expectations, and Sentiments
Simon Peters, the lead financial expert at Etoro, accredited Bitcoin investors for encouraging the bigger change.
Peters suggested that since monetary policies have been eased up a little bit, Bitcoin is able to showcase great resistance.
He claimed that because of Bitcoin’s resistance, the asset has been refusing to accept and rejecting the declines momentarily.
He further suggested that Bitcoin is in fact drawing influence from the positive reports stemming from global monetary and financial institutions.
Peters specifically made mention of the global institute, Goldman Sachs, in this regard. He referred to Goldman Sachs’s Bitcoin report in which the institute not only appreciated Bitcoin but also gave the highest recommendation to it.
Goldman Sachs noted that Bitcoin was once again proving its dominance over all major assets of the world and their classes.
The institute further noted that the asset’s performance from 1st January 2023 to date has been an exceptional one.
It also noted in the report that Bitcoin’s value had substantially swelled up by 48% in the preceding month.
Arguments of Peters Supporting Bitcoin
Peters argued that when interest rates were increasing, investors were left with zero options. Each market went into the ‘Extreme Fear’ zone which then led the investors to think outside of the box for finding a worthy store of value.
This store of value was eventually provided to them by Bitcoin.
Presently, Bitcoin is again facing value declines. However, the good thing is that the CFGI is still in the Greed zone.
Secondly, since the correction has already commenced, it is very much possible that Bitcoin would attract further gains.