Bitcoin (BTC) has been on a rally since the beginning of 2023. After a tough year in 2022, the leading cryptocurrency has partially recovered its losses while rewarding this year’s investors.
Notably, Bitcoin is up 134.32% in the last 329 days since the first week of the year. This means that a $1,000 BTC investment would be worth $2,343.2 at the time of publication. Logically, a $1 million initial investment in Bitcoin in January is now worth $2.43 million for millionaire gains.
Bitcoin opened the weekly first candle of 2023 at $16,552 and is trading at $38,792 by press time, according to TradingView.
2021 Bitcoin investments are still at a loss
However, it is important to understand that this yearly rally would still need another 77% increase to regain 2021’s levels.
Only six out of the 52 weeks in 2021 saw Bitcoin trading at lower prices than the current zone. This means every purchase in the other 46 weeks still loses these prices.
In particular, a $1,000 investment in Bitcoin during November’s all-time high of $69,000 is now worth $562.3. These 43.77% losses would have made a million-dollar investment worth just a little more than half of it.
Both bullish and bearish scenarios highlight the importance of proper risk management and having a clear strategy when investing.
Many cryptocurrency analysts expect Bitcoin to see higher levels in 2024. Its price action will be guided by BTC’s capacity to acquire an increased demand facing the constantly increasing supply through mining.
All things considered, if Bitcoin manages to acquire the same speculative demand it had in November 2021, BTC would trade at $66,574 per coin, as previously reported by Finbold.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Read the full article here
