Bitcoin prices climbed yesterday, causing the digital currency to reach a multimonth high.
The world’s most prominent digital currency rose to $23,800.13 last night, according to CoinDesk data.
At this point, the cryptocurrency was trading at its highest in more than five months, holding its loftiest value since mid-August, additional CoinDesk figures show.
Further, the digital asset had appreciated more than 40% since the start of the year, having climbed from close to $16,500 on January 1.[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Since last night, bitcoin has pulled back, falling more than 3% to trade at $23,014 at the time of this writing.
The digital currency is having a strong January, rallying sharply after suffering a very difficult 2022 where it lost 65% of its value, according to an annual review of crypto prepared by CoinDesk.
The price of bitcoin has had a very volatile past, experiencing several cycles of booms characterized by compelling gains followed up bearish periods where it lost substantial amounts of value.
In November 2021, the digital currency reached an all-time high of nearly $69,000, as analysts pointed to several headwinds as pushing the cryptocurrency’s price to this level.
However, this lofty value was unsustainable, and bitcoin declined, finishing 2021 close to $48,000, according to a CoinDesk article.
The following year, the digital currency pushed far lower, dropping below $16,000 in November as markets responded to multiple bearish developments including the collapse of troubled exchange FTX.
In spite of all this, bitcoin managed to stay north of $15,000 throughout the turmoil, a price point that the digital currency did not reach until 2017, when it had been in existence for more than eight years.
Where it heads next is anyone’s guess, but it is worth keeping in mind that every time the digital currency experiences a bullish cycle, it reaches a fresh, all-time high.
After falling to last year’s lows, the digital currency could be heading for a six-figure value.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.
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