Despite the fact that many of the problems that caused headaches in the crypto industry in 2022 are carried over to 2023, the recovery movement in cryptocurrencies continues. The risk of FTX-related problems spreading to other companies still remains a major threat. The last example of this was seen with the bankruptcy of Genesis. However, this bankruptcy news has not priced negatively the crypto markets. On the contrary, Bitcoin made a significant leap with its daily value increase exceeding 7.5% on the day of its bankruptcy announcement.
Crypto miners, who had to sell their BTC assets en masse due to increasing costs throughout 2022, were one of the most important elements of the decline. The fact that miners have reduced their sales this month contributes to the positive outlook. According to Blockchain data, the amount of BTC transferred from tracked mining wallets to central exchanges has reached the lowest level in the last 3 years. According to the comments of Bitfinex analysts, miners continue to hold their assets as they expect further increases in Bitcoin.
Analysts, who also warned against the positive outlook, said that depending on the rapid rise, the decision of investors to switch to profit realization may have an effect that could reverse the current trend. However, it was noted that large investors continued to accumulate Bitcoin during the period of November and December, when cryptocurrencies were at the bottom of the year. After this process, small investors also increased their Bitcoin purchases and supported this month’s rally.