The price of bitcoin is looking to close February up more than 40 per cent since the start of the year, marking the most positive start to a year for the cryptocurrency since the record-breaking 2021.
Bitcoin is currently trading at just above $23,000, having dipped slightly from the eight-month highs of $25,000 last week.
It is a significant price increase from last November, when BTC hit two-year lows of below $16,000 – down more than 70 per cent from its record high from November the previous year.
It has given hope that bitcoin is finally transitioning from a bear market to a bull market, and that the so-called “crypto winter” is coming to an end.
Despite the recent price gains, bitcoin remains a long way off its former peak and continues to face resistance at around the $25,000 level.
Whether the move into a bull market can be achieved will depend on whether this price can be surpassed over the coming days, according to Mike McGlone, a senior macro strategist at Bloomberg Intelligence.
“Headwinds remain strong,” he wrote on Twitter. “$25,000 resistance may prove significant for all risk assets.”
Crypto market analysts warned on Monday that further interest rate rises in the US could prove detrimental to bitcoin and the broader cryptocurrency space.
“While still markedly above their lows, the crypto market is looking tentative in the face of the possibility of stickier than expected inflation and labour market in both the US and elsewhere,” said Simon Peters, an analyst at the online trading platform eToro.
“This macro data is key in central banks’ thinking around rate hikes with main markets now pricing in no rate cuts in 2023. While bitcoin and ether don’t seem to be in full on fear, there is most certainly an element of jitters among market participants watching for fresh updates, and this is showing in the price movement of the past week.”
Other analysts remained hopeful that bitcoin could continue its upward momentum, with popular commentator Kaleo claiming that $30,000 is “still a magnet”.