Bitcoin price is back in flux, as the cryptocurrency struggles with macroeconomic forces with unexpected new developments in the cryptocurrency industry.
The number one cryptocurrency by market capitalization has had one of its deadliest years, but it maintains a positive outlook for 2023.
At the time of this writing, Bitcoin (BTC) is trading at $16,800 and continuing its sideways movement in the last 24 hours.
On higher timeframes, the cryptocurrency is posting some losses as it was rejected from the 50-day simple moving average (SMA) at around $17,800.
Will Bitcoin see better days in 2023?
According to a recent report from Coinbase, bitcoin has been resilient in the face of the current market turmoil.
Despite the US Federal Reserve (Fed) raising interest rates, a high inflation environment, and the collapse of major corporations in the cryptocurrency ecosystem, Bitcoin has remained resilient, as also mentioned in the Coinbase report:
Bitcoin remains one of the primary reserve currencies in the cryptocurrency economy.
This became evident several times during the year when highly leveraged players across the market such as CEFI lenders, hedge funds and venture capital funds became forced sellers.
Bitcoin's ability to withstand the collapse of these companies and entities, including the bankruptcy of some of the largest bitcoin mining companies, indicates its long-term success.
Regardless of these events, Coinbase claims that Bitcoin continued adoption in 2022.
Bitcoin has overtaken some of the world's major currencies in the macro landscape.
As shown in the chart below, the price of Bitcoin has seen a better performance than the Euro (EUR) and the Japanese Yen (JPY) in 2022.
This performance reinforces Bitcoin's long-term bullish thesis and its vital role as a global asset.
Bitcoin hits critical milestones:
Comparing the current price performance and fundamentals of Bitcoin, Coinbase has determined that many Bitcoin holders are confused.
Currently, about 50% of Bitcoin investors are in the red (in a losing position), which could provide a solid base for the overall market bottom.
In previous bear markets, this amounted to an average of 53% of bitcoin holders at a loss.
In this sense, Bitcoin and the crypto market could be heading for an “inflection point,” according to a Coinbase report that also stated:
These represent major inflection points for Bitcoin's performance, ahead of subsequent periods of price rally.
We believe this metric provides important insights into the state of the current cycle.
