Bitcoin had a remarkable first half of 2023. The cryptocurrency appreciated by a mammoth 84% from the beginning of January to the end of June. This compared with Nasdaq's 37.5%, the index's best first half performance in 40 years.
This is a brilliant comeback following last year's brutal bear market, that culminated in the FTX failure in late 2022. Bitcoin has almost doubled in value, ignoring regulatory concerns, thanks to a better overall economy and increased participation from institutions.
Whilst aggressive interest rate hikes acted as a headwind for Bitcoin last year, the rate of change in the 2-year yield has moderated, which has benefitted the cryptocurrency. Moreover, and importantly, institutional interest in the crypto industry has increased significantly. Companies like Blackrock and Fidelity are looking to launch spot bitcoin ETFs.
The prevailing belief among market participants is that cryptocurrencies are poised to continue their upward trajectory. This optimism is fuelled by the positive momentum gained from a exceptional start to the year. The cryptocurrency has charted a series of higher troughs, followed by higher peaks. This puts bitcoin into the uptrend category:
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.