What awaits Bitcoin next year?

According to trading data, bitcoin has demonstrated an uncharacteristic sluggishness of dynamics over the past two weeks, consolidating in the range of $15770 – $17350. However, on Tuesday, the cryptocurrency went up sharply, reaching $17795.

Analysts are wondering what awaits bitcoin and the entire cryptocurrency market next year, especially after the collapse caused by the collapse of the FTX exchange in November. 

The co-founder of Pluto, a company that provides services to retail investors, noted that there are not so many sellers left on the market now. The fact is that most miners, who are large holders of bitcoins, have closed positions in order to repay loans taken out in fiat money to finance the purchase of equipment and operations. 

This can explain some lull in the market: the number of bitcoins for sale is now less than at the beginning of the year. According to the Coinglass crypto platform, today the amount stored on trading platforms is 1.97 million, whereas it was 2.33 million.

In general, bitcoin has fallen by more than 60% this year, and many investors are putting it in offline storage, which should strengthen the minimum price of about $16 thousand. Economists believe that if not for the loud collapse of FTX, Celsius and Terra this year, the price of bitcoin would now be close to $25,000.

So what awaits the most popular cryptocurrency in the new year 2023? Analysts point out several main potential dangers. Firstly, it is the risk of miners selling their assets to stay afloat, as mining is becoming more expensive. In general, mining starts to become unprofitable below $20,000.

Secondly, another risk lies in a more «hawkish» than expected position of the US Federal Reserve at the last meeting of the year, scheduled for tomorrow. Tightening monetary policy may further undermine the risk appetite and prospects for bitcoin.