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With investors hoping for a reversal in monetary tightening policies that caused economic downturns throughout 2022, speculative assets such as Bitcoin rallied in January. After losing over 60% of its market value that year, the world’s largest cryptocurrency has had an excellent start to 2023 by appreciating 28% in January versus the U.S. dollar.
At the time of writing, Bitcoin is trading higher than at any point in the previous six months. For crypto investors who have weathered the storm of the Crypto Winter, this comes as welcome news.
Will Bitcoin rise again in February? At this point in time, it’s difficult to make any substantive predictions about Bitcoin and the crypto market as a whole. Following the FTX scandal and the indictment of its notorious founder, Sam Bankman-Fried, it’s anyone’s guess whether cryptocurrency still has enough mass appeal to verge closer to its former heights.
Some analysts speculate that Bitcoin could test new highs around $75,000 by the end of the year, whereas others are far less bullish. The majority of investment analysts still consider 2023 to be a cautious year for markets as a whole—especially the cryptocurrency market.
Looking Forward
One thing that remains certain, however, is that Bitcoin certainly has much higher price potential. Its current price is still one-third of its all-time high in 2021. Whether it will creep back up to this point is up for debate, but there’s no debate about whether it has the potential to get there. Those who can absorb more risk in their portfolio may want to take a gamble on crypto this year as asymmetric conditions may be set for this investment.
In our opinion, it’s more likely than not that the Crypto Winter has reached its bottom. Although it may take a considerable amount of time before the asset class reaches the demand levels it saw in 2021, we’re cautiously bullish that the cryptocurrency market will expand in the year ahead.
Meanwhile, gold has once again stood strong amid relatively unstable broader market forces. Once again, gold is in the green, making significant gains over the first three weeks of January until cooling down to a +0.1% gain by month-end. Although far from impressive, January, yet again, proved that gold is good for slow and steady gains.
Those looking for a safer bet as we start off 2023 should consider adding gold or silver to their portfolios. While more speculative assets have suffered over the past 12 months, the yellow metal is up +2.34%. How does this compare to your crypto holdings, or your stock-heavy 401(k)?
Protect Your Wealth in 2023
If you want the protection that gold can provide, contact one of our top-ranked gold IRA providers today. They have the expertise to guide you through the process of opening, funding, and maintaining an IRS-compliant account with all the tax benefits of a Roth or Traditional IRA. Plus, many of the top providers, such as Advantage Gold, are currently waiving all first-year fees for new sign-ups.
More open to risk? The price ceiling of Bitcoin is high. Consider adding Bitcoin or other cryptocurrencies to your IRA in order to capitalize on the current market correction before the next pump. Consider investing in a Bitcoin IRA today with one of our top service providers.
(Cryptocurrencies are highly speculative assets. Do NOT invest more than you can afford to lose. Do your due diligence and speak to your financial advisor before making any investment decision. Past results are not indicators of future returns.)
Liam Hunt, M.A., is a financial writer covering global markets, monetary policy, retirement savings, and millennial investing. His commentary and analysis have been featured in the New York Post, Reader's Digest, Fox Business, and Forbes.
