# Cryptoverse: Bitcoin digs in for a bumpy new year Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-01-10 Category: Uncategorized Category URL: https://financedigest.com/category/uncategorized Meta Title: Bitcoin Price Analysis 2023: A Year of Steady Growth Amid Meta Description: Despite low volatility and subdued trading volumes, Bitcoin shows promise in 2023 with potential upside moves. Get the latest insights on the cryptocurrency URL: https://financedigest.com/cryptoverse-bitcoin-digs-in-for-a-bumpy-new-yearhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-01-10t061526z1lynxmpej0904ortroptp4fintech-crypto-weekly-1736814598514-compressed.jpg) By Lisa Pauline Mattackal (Reuters) – Bitcoin’s looking steady in 2023. But it’s only been a week. Cryptocurrencies have crept into the new year, licking their wounds after the carnage of 2022. The overall [global crypto market cap has risen 5% to $871 billion](https://www.financedigest.com/global-citizen-seeks-up-to-1-billion-for-six-sustainable-impact-funds.html "Global Citizen seeks up to billion for six sustainable ‘Impact’ funds") since Jan. 1, but it’s still down over 57% from this [time last year](https://www.financedigest.com/why-the-new-year-is-the-best-time-to-start-your-dream-tech-business.html "Why the New Year is the best time to start your dream tech business"). [Bitcoin itself has gained 4.3% since](https://www.financedigest.com/dollar-retreats-headed-for-biggest-weekly-loss-since-mid-january-bitcoin-down.html "Dollar retreats, headed for biggest weekly loss since mid-January; bitcoin down") the start of 2023, though stuck in a narrow range between $16,500 and $17,300. The [world’s biggest](https://www.financedigest.com/biggest-economy-in-the-world.html "Biggest Economy in the World") cryptocurrency is eerily subdued, with its 7-day volatility dropping to levels not seen since October 2018, according to Refinitiv Eikon data. It will be a year for the patient, as we do not [anticipate prices nearing](https://www.financedigest.com/speaker-membrane-market-is-anticipated-to-expand-at-an-impressive-cagr-of-nearly-9-during-the-forecast-period-of-2020-2030.html "Speaker Membrane Market is anticipated to expand at an impressive CAGR of nearly 9% during the forecast period of 2020-2030") former all-time highs in 2023,” said Vetle Lunde, senior analyst at Arcane Research. Cryptocurrency spot trading volumes [remain similarly muted after slumping about 48% in December versus the previous month](https://www.financedigest.com/6-months-to-go-until-brexit-and-investor-sentiment-remains-bold.html "6 months to go until Brexit and investor sentiment remains bold") to $544 billion, their lowest level since December 2019, CryptoCompare data showed. While lower trading volumes are common around the [turn of the year](https://www.financedigest.com/2043-the-year-britain-will-turn-cashless.html "2043: The year Britain will turn cashless"), the crypto market apathy has been exacerbated by a “general exodus” of active retail investors, according to Arcane Research. For some [market players](https://www.financedigest.com/automotive-hmi-system-market-recent-industry-developments-and-growth-strategies-adopted-by-players.html "Automotive HMI System Market: Recent Industry Developments and Growth Strategies Adopted by Players"), though, subdued sounds pretty good after the bitcoin bloodbath of 2022. I feel encouraged by the floor we’ve seen forming under bitcoin, it shows there’s a lot of [demand around $16,000 and $17,000 levels,”](https://www.financedigest.com/delta-sees-return-to-profit-as-travel-demand-hits-historic-levels.html "Delta sees return to profit as travel demand hits ‘historic’ levels") said Callie Cox, investment analyst at investment platform eToro. So what happens now? Graphic: Calm on crypto front https://www.reuters.com/graphics/FINTECH-CRYPTO/WEEKLY/jnpwywelqpw/chart.png THE BULL’S TALE Marcus Sotiriou, analyst at digital asset broker GlobalBlock, pointed to tightening Bollinger bands – a technical indicator tracking [price and volatility](https://www.financedigest.com/italy-cpi-rises-again-in-april-amid-energy-prices-volatility.html "Italy CPI rises again in April amid energy prices volatility") – on bitcoin charts. The bands are at their tightest since July 2020, and such [tightening has historically preceded aggressive](https://www.financedigest.com/sterling-slides-as-bets-for-aggressive-u-s-tightening-boost-dollar.html "Sterling slides as bets for aggressive U.S. tightening boost dollar") moves to the upside for bitcoin, he added. This possible scenario was echoed by Arcane Research’s Lunde. These [low volatility periods](https://www.financedigest.com/volume-of-periodic-payment-orders-remains-low-according-to-aon-uk-motor-insurance-study.html "Volume of periodic payment orders remains low, according to Aon UK motor insurance study") rarely last for long, and volatility compression periods have previously tended to be followed by sharp moves, even in stagnant markets,” he said. Additionally, [funding rates](https://www.financedigest.com/rate-rise-fears-prompt-third-week-of-global-equity-funds-outflows.html "Rate rise fears prompt third week of global equity funds outflows") for perpetual bitcoin futures have been positive since Dec. 19, according to Coinglass data, meaning traders are betting on prices to [rise and will pay](https://www.financedigest.com/unicredit-shareholders-urged-to-reject-ceo-orcels-pay-rise.html "UniCredit shareholders urged to reject CEO Orcel’s pay rise") to keep their long positions open. THE BEAR’S TALE On the other hand, cryptocurrencies remain at the mercy of macroeconomic headwinds as worries whirl around a slowing [global economy](https://www.financedigest.com/global-economy-seen-facing-a-challenging-year-eurochambres.html "Global economy seen facing a challenging year -Eurochambres"). The weaker [economic outlook means people have less disposable income to invest](https://www.financedigest.com/the-politics-economics-and-investment-implications-of-brexit.html "The politics, economics and investment implications of Brexit") in what they deem as risky assets like crypto,” said GlobalBlock’s Sotiriou. [Economic uncertainty](https://www.financedigest.com/combatting-economic-uncertainty-in-2023-with-the-payments-sector-2.html "Combatting economic uncertainty in 2023 with the payments sector") could send investors running for the safety of the U.S. dollar, which tends to be inversely correlated to bitcoin, said Dalvir Mandara, quantitative researcher at MacroHive. “The macro backdrop is still bearish for crypto,” Mandara added in a note on Thursday. Meanwhile, [crypto corporates face the fallout from the collapse of Sam Bankman-Fried’s FTX exchange](https://www.financedigest.com/exclusive-binance-moved-346-million-for-seized-crypto-exchange-bitzlato-data-show.html "Exclusive-Binance moved 6 million for seized crypto exchange Bitzlato, data show"). Some major firms have started laying off employees in a bid to save costs, while Silvergate Bank reported an $8 [billion drop in crypto-related deposits which sent its shares](https://www.financedigest.com/novartis-launches-new-11-billion-share-buyback.html "Novartis launches new billion share buyback") plunging nearly 43%. (Reporting by Lisa Pauline Mattackal in Bengaluru; Editing by Pravin Char) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---