In 2023, Bitcoin faces many challenges and opportunities, as the cryptocurrency industry develops and matures. Some of the main factors that can affect the price of Bitcoin in 2023 are inflation, regulation, innovation, and adoption. I will explain these factors in more detail in the following paragraphs.
MicroStrategy Buys $147.3 Million in Bitcoin
MicroStrategy, a business intelligence company that has been one of the most aggressive buyers of bitcoin, announced on Monday that it purchased an additional 5,445 bitcoins for about $147.3 million in cash¹. The company now holds a total of 114,042 bitcoins, which were acquired at an average price of $40,713 per bitcoin¹. The company's bitcoin holdings are worth about $4.68 billion at the current market price⁴.
MicroStrategy's CEO Michael Saylor has been a vocal advocate of bitcoin as a store of value and a hedge against inflation. He has repeatedly stated that the company will continue to buy more bitcoin as part of its corporate strategy¹. Saylor has also encouraged other companies and institutions to adopt bitcoin as a treasury asset².
Bitcoin Price Consolidates Above $26K
Bitcoin price is trading in a range above the $26,000 support level, as it faces resistance near the $26,500 and $26,800 levels⁵. The price is still down by more than 30% from its all-time high of $38,000 reached in August⁴. However, some analysts believe that the price could start a recovery wave if it clears the $26,500 resistance zone in the near term⁵.
Some of the factors that could support a bullish scenario for bitcoin include the growing adoption by institutional investors, the increasing demand from retail buyers, and the limited supply of new bitcoins due to the halving event that occurred in May 2020³. Additionally, some technical indicators suggest that the price is oversold and could bounce back from the current levels⁵.
Bitcoin News Roundup
Here are some of the other bitcoin-related news stories that made headlines today:
- Economist Peter Schiff Warns of 'Tragic Ending' and US Dollar Collapse — Says 'Day of Reckoning Is at Hand': The outspoken critic of bitcoin and gold bug Peter Schiff has warned that the US dollar is on the verge of collapse and that bitcoin will not save anyone from the impending crisis. He said that the US government is printing too much money and creating too much debt, which will lead to hyperinflation and a loss of confidence in the dollar. He also said that bitcoin is a speculative asset that has no intrinsic value and that it will crash along with the dollar.
- New York Shrinks List of Pre-Approved Crypto — DOGE, XRP Among Coins Removed: The New York Department of Financial Services (NYDFS) has updated its list of pre-approved cryptocurrencies for custody and listing by licensed entities in the state. The list, which was first published in 2018, has removed some of the coins that were previously approved, such as DOGE, XRP, EOS, NEO, and DASH. The NYDFS said that the removals were based on factors such as regulatory actions, litigation, compliance issues, and market capitalization changes.
- Bitcoin Mining Hits Toughest Era: Record Difficulty and Hashrate Peaks Define September 2023: Bitcoin mining has become more challenging than ever, as the network difficulty and hashrate reached new record highs in September 2023. The network difficulty, which measures how hard it is to find a new block and earn the block reward, increased by 7.39% to 27.29 trillion on September 24. The network hashrate, which measures the total computing power of the miners, also hit a new peak of 218 exahashes per second (EH/s) on September 27. These metrics indicate that the competition among miners is fierce and that the security of the network is robust.
That's all for today's bitcoin news update. Stay tuned for more updates on the world's leading cryptocurrency. itcoin.us-