Bitcoin Rally May Not Last: Will Strengthening Economy Hurt Crypto?

• Bitcoin has had a great year thus far, but some analysts worry that a strengthening economy could put an end to its present rally.
• OANDA’s Craig Erlam sees potential for bitcoin to continue rising in 2023 and beyond.
• Fawad Razaqzada of City Index worries that if economic growth concerns intensify, crypto assets may struggle to sustain their recovery.

Bitcoin’s Rally

Bitcoin has had a great year thus far, but there are some that say with the economy getting stronger, the present rally it’s enjoying won’t last. Among the analysts who feel positive towards bitcoin is OANDA’s Craig Erlam, who stated: It has been a phenomenal start to 2023 for bitcoin. 2022 was easily the worst year on record for the world’s number one digital currency by market cap. After reaching a new all-time high of about $68,000 per unit in November of 2021, the asset lost more than 70 percent of its value over the next 12 or 13 months and by the time 2022 was over, the asset had dropped to the mid-$16K range. However, things didn’t quite stop there as many of bitcoin’s crypto cousins chose to follow in its footsteps. Before long, every major digital asset was traveling through the doldrums and the crypto space lost more than $2 trillion in overall valuation. Investors have been feeling the heat and their digital wallets are no doubt experiencing a lot of emptiness right now.

Bitcoin Rebound

However, bitcoin appears to be coming back in a small way. January and February of this year were decorated with additional price bumps, with bitcoin hitting a new six-month high of $25K just a few weeks ago, and there are many out there who think the space could once again rise through the financial ranks this year. Erlam continued with: The bitcoin rebound has been particularly extraordinary, and the very thing that caused it so much trouble towards the end of 2022 may be driving the strong rebound now. The thing I’m referring to at