what caused bitcoin to go up this january 2023

[Stella Mese]

I see the price of bitcoin has increased, from 18000 now to 21000. and I think this is a good increase, at the beginning of 2023 and I think of course this is a sign that bitcoin will soon go to a bull market,

but I want to ask is bitcoin going to a bull run, or is it just a trap,? which later the price of bitcoin will fall again to 18000 or 17000?

[1715197161]

1715197161

[1715197161]

1715197161

[1715197161]

1715197161

[Hispo]

If I had to speculate. I think it has something to do with the recent news from the United States about how inflation had been decreased or slowed down. Investors may be feeling specially optimistic about the economy in general and decided to put more money into all kind of assets like Bitcoin and stocks.

Just my personal theory, it could be a collection of several other things.
Also, it is funny how someone was suggesting this pumping in the price was caused by miss Salvador wearing a Bitcoin themed outfit.  

[1miau]

I see the price of bitcoin has increased, from 18000 now to 21000. and I think this is a good increase, at the beginning of 2023 and I think of course this is a sign that bitcoin will soon go to a bull market,

Difficult to say but Bitcoin's price has been very low for a long time now, so it's somehow overdue to go up again. As we know, Bitcoin has moved in cycles and it likely to keeo doing so. People are aware about it and try to anticipate the next bull run. Since Bitcoin has started to get very bullish in 2023, many people are getting FOMO, probably. 
In addition, Bitcoin is increasingly held by people planning to HODL Bitcoin for a long period. That's removing supply from the market causing BTC price to go up.

As Hispo corrently mentioned it's also a result from several good news. Good news from USA, FED, Inflation, Economy and Investors taking more risks again. After all, Crypto is likely to be a great innovation.

And finally, the next Bitcoin Block halving is just about 1 year from now. 

but I want to ask is bitcoin going to a bull run, or is it just a trap,?

Nobody knows because if we'd know, we could just take a credit and buy more Bitcoin, repay our credit later and keep our gains. 

[franky1]

bitcoin was being held below a wall of resistance of $17k due to whale traders of "futures" betting the price would be under $17k by new years.
so they were (separate stash) day trading the spot markets via arbitrage* to keep the spot markets below $17k so that their futures contracts settled with a win. as soon as they got their win they no longer needed to wall the spot market below $17k. and the floodgates opened allowing the price to increase without the restraint/resistance

*the cost of doing this is actually quite cheap
lets use coinbase fee's for instance

Taker fee: $400M+0.05%
How are taker fees calculated?
Your fee tier is based upon total USD trading volume over the trailing 30-day period.

imagine you have a $500m futures bet that can turn into $1b if it wins

spot market:
so when most orders are 0.01btc for other shrimp/minnow traders
and a whale keeps 'taking' at just 0.1-2.2btc per order/multiple orders(then arbitrage cycle) per 0.1 second to control and out perform the shrimp
their fee is 0.05% of 0.1btc x3(arbitrage)=0.15% total fee per trip per allotment/order cycle
=$0.85 fee of 0.1btc per 0.1second
=$8.85/s
=$510/min
=30.6k/hour
=$734k/day
=22m per month

spending 22m to enforce a wall for a month to get a $500m bet to 2x by decembers end is cheap

[crwth]

If we were to consider multiple factors like

• Mainstream Adoption
• Institutional Investments
• Limited supply of BTC
• Inflation

We can conclude that there's a drive in demand for making more money with the stored value type of thing that Bitcoin offers. With all the news surrounding the crypto scene, like the FTX recovery of funds and other mainstream media sources, the drive-in price is expected, TBH.

Just continue DCA-ing BTC, and you will be okay.

[laurenB7742]

If I had to speculate. I think it has something to do with the recent news from the United States about how inflation had been decreased or slowed down. Investors may be feeling specially optimistic about the economy in general and decided to put more money into all kind of assets like Bitcoin and stocks.

Just my personal theory, it could be a collection of several other things.
Also, it is funny how someone was suggesting this pumping in the price was caused by miss Salvador wearing a Bitcoin themed outfit.  

I agree that the US inflation news has had a positive effect on the market but I believe it is not the only catalyst for the rise of bitcoin. I still suspect this is a trap created to manipulate market sentiment. When people wait for a new bottom of bitcoin, they will make bitcoin go up, people will be very impatient and maybe in the coming days bitcoin will continue to rise to hit people's greed make people buy bitcoin for fear of missing the train. So I still think this is more of a trap than a sign of the bull season.

[Upgrade00]

Bitcoin price is constantly volatile, meaning it is always responding to the forces of demand and supply. The price you see on tracking websites is a collection of the last traded price on multiple exchanges and that of itself is a reflection of the sentiments traders have about it based on their current analysis.

There are so many factors that can affect the price of Bitcoin and cause it to go up or down;
• The fundamentals can be at play and it has been undervalued for a long time, finally getting to break a resistance level.
• It could also be the effect of some mainstream news which spread positive sentiments.

but I want to ask is bitcoin going to a bull run, or is it just a trap,? which later the price of bitcoin will fall again to 18000 or 17000?

Impossible to predict, but I don't expect a bull run so soon, maybe a couple of months in the upside, but not the kind of growth seen during a bull run. If you are not a trader, just keep holding.
Impossible to predict again.

[hd49728]

You can not time the market but your patient time in the market is helpful for you.

Stay in the market, stay patiently and let the market does its own operations.

If you look at Bitcoin chart, a latest few months are boring and they are accumulation months. It makes a lot of sense to rise after accumulation. The year 2023 started with rises of stocks and good stats for CPI in USA. It is good support to boost Bitcoin but not real reasons. It has to rise after accumulation and news are not reasons, CPI is not reason.

[LittleBitFunny]

This morning I checked all the news related to the market but didn't really find anything remarkable to help bitcoin skyrocket. What I found is everything is green and people are showing off all over the forums and social networks:D . Sometimes bitcoin goes up for no reason and there are always surprises, bitcoin is like that. Many people have predicted and expected bitcoin to increase in price this January and it is coming true. So enjoy these moments as we've been in a bear market for too long. I don't intend to sell any of my bitcoins yet, but it's nice to see the market rebound.

[bittraffic]

This morning I checked all the news related to the market but didn't really find anything remarkable to help bitcoin skyrocket. What I found is everything is green and people are showing off all over the forums and social networks:D . Sometimes bitcoin goes up for no reason and there are always surprises, bitcoin is like that. Many people have predicted and expected bitcoin to increase in price this January and it is coming true. So enjoy these moments as we've been in a bear market for too long. I don't intend to sell any of my bitcoins yet, but it's nice to see the market rebound.

You might have missed some reports like the CPI report telling that inflation had gone down since Nov. Well, it's their report all we do is just listen to it.  https://www.cnbc.com/2023/01/11/cpi-inflation-is-expected-to-have-declined-in-december.html

And then there's Yellen telling US debt default which is something that warns people to find another way to hedge. They must be running to get more BTC.

U.S. Treasury Secretary Janet Yellen said on Friday the United States will likely hit the $31.4 trillion statutory debt limit on Jan. 19, forcing the Treasury to launch extraordinary cash management measures that can likely prevent default until early June.

https://www.reuters.com/markets/us/yellen-urges-us-congress-act-quickly-debt-limit-2023-01-13/

[pooya87]

This is not the first time something like this happens. If you look at the price history over the past decade you can see many situations like this which can be described best as reverse bubbles and just like a regular bubble they pop too because the price is unrealistically low and to reach balance the market has to "correct" itself by going back up.

The US CPI report may have had some psychological effects on this but it is not the main reason specially since it is well known that they changed the way they calculate inflation so that they can manipulate the numbers and pretend it has gone down while it is still high.
After all this is more than 30% price rise. A simple fake news about inflation can not cause such a big rise specially ccould not break a strong resistance such as $20k.


From reddit

[LittleBitFunny]

This morning I checked all the news related to the market but didn't really find anything remarkable to help bitcoin skyrocket. What I found is everything is green and people are showing off all over the forums and social networks:D . Sometimes bitcoin goes up for no reason and there are always surprises, bitcoin is like that. Many people have predicted and expected bitcoin to increase in price this January and it is coming true. So enjoy these moments as we've been in a bear market for too long. I don't intend to sell any of my bitcoins yet, but it's nice to see the market rebound.

You might have missed some reports like the CPI report telling that inflation had gone down since Nov. Well, it's their report all we do is just listen to it.  https://www.cnbc.com/2023/01/11/cpi-inflation-is-expected-to-have-declined-in-december.html

I don't miss it. I know falling CPI is a sign of economic recovery, and this should be a good sign for all markets, but looking at inflation still at 6.5%, I don't see that as big news that makes Bitcoin soar.

And then there's Yellen telling US debt default which is something that warns people to find another way to hedge. They must be running to get more BTC.

U.S. Treasury Secretary Janet Yellen said on Friday the United States will likely hit the $31.4 trillion statutory debt limit on Jan. 19, forcing the Treasury to launch extraordinary cash management measures that can likely prevent default until early June.

https://www.reuters.com/markets/us/yellen-urges-us-congress-act-quickly-debt-limit-2023-01-13/

Moreover, the more I don't believe news like this, the US government default rumor I've heard for years and never came true. If this news was confirmed we would see DXY plummet but that didn't happen and gold would be the first thing people look for, not bitcoin. And other markets will panic, but overall the stock market is doing well.

[mk4]

Is this a bull trap or was that the bottom? No one knows and time will only tell.

In the first place, this price increase in only a blip when zooming out, knowing how big of a drop we had last year.

[hd49728]

Is this a bull trap or was that the bottom? No one knows and time will only tell.

In the first place, this price increase in only a blip when zooming out, knowing how big of a drop we had last year.

Looks like a bull trap from an altcoin 

I agree nobody can know it is a rise from real bottom or a bull trap. Usually it has to be retested the bottom even real bottom was touched and I think Bitcoin will retest its $16,000 bottom range again.

Halving is still very far and with more than one year before a next halving, Bitcoin will have other crashes to retest weak hands, dump pressure from weak hands. Market must be clean without too many weak hands and capital from them before a new bull run.

[Smack That Ace]

As an aside from the impact of the CPI, I just found this news and I think that maybe that is the reason why bitcoin is rising at such a fast. But we should not be too surprised either, as we have gone through a very long bearish season, and it's understandable for bitcoin to recover. However, it is yet to be determined whether this is a short-term rally or a sign of a bull season. Our job is to enjoy them after long days of waiting.

[bittraffic]

This morning I checked all the news related to the market but didn't really find anything remarkable to help bitcoin skyrocket. What I found is everything is green and people are showing off all over the forums and social networks:D . Sometimes bitcoin goes up for no reason and there are always surprises, bitcoin is like that. Many people have predicted and expected bitcoin to increase in price this January and it is coming true. So enjoy these moments as we've been in a bear market for too long. I don't intend to sell any of my bitcoins yet, but it's nice to see the market rebound.

You might have missed some reports like the CPI report telling that inflation had gone down since Nov. Well, it's their report all we do is just listen to it.  https://www.cnbc.com/2023/01/11/cpi-inflation-is-expected-to-have-declined-in-december.html

I don't miss it. I know falling CPI is a sign of economic recovery, and this should be a good sign for all markets, but looking at inflation still at 6.5%, I don't see that as big news that makes Bitcoin soar.

And then there's Yellen telling US debt default which is something that warns people to find another way to hedge. They must be running to get more BTC.

U.S. Treasury Secretary Janet Yellen said on Friday the United States will likely hit the $31.4 trillion statutory debt limit on Jan. 19, forcing the Treasury to launch extraordinary cash management measures that can likely prevent default until early June.

https://www.reuters.com/markets/us/yellen-urges-us-congress-act-quickly-debt-limit-2023-01-13/

Moreover, the more I don't believe news like this, the US government default rumor I've heard for years and never came true. If this news was confirmed we would see DXY plummet but that didn't happen and gold would be the first thing people look for, not bitcoin. And other markets will panic, but overall the stock market is doing well.

I know but this pronouncement comes from Yellen herself. Can't count that as a rumor but of course, we know who this bitch is.

This could be a bull trap though. We have seen this over and over to have happened and it could happen again while the halving is yet not here. Investors in crypto however will feel the FOMO when it pumps like this while they are still holding stablecoins.  It was $21,200 a few hours ago but now it had been dumped so it must happen any moment.

[S A KHAIR]

I see the price of bitcoin has increased, from 18000 now to 21000. and I think this is a good increase, at the beginning of 2023 and I think of course this is a sign that bitcoin will soon go to a bull market,

but I want to ask is bitcoin going to a bull run, or is it just a trap,? which later the price of bitcoin will fall again to 18000 or 17000?

Bitcoin is a manipulative market, news is just a complicated thing so it's not uncommon for bitcoin to go up in price without news and that's why we always say bitcoin price is unpredictable. Whatever the reason, I just hope bitcoin can hit 25k before there is a correction back, those already DCA at 16k can sell for profit.

[franky1]

Is this a bull trap or was that the bottom? No one knows and time will only tell.

Q3-Q4 of 2022 was testing the bottom
but this rise in the new year is too early to call out "bull"

remember there was also resistance at ~$22k and ~$25k and ~$32k and ~$42k last year. so we may hit resistance again at these/some other number WAY below 2021 ATH

[mk4]

but this rise in the new year is too early to call out "bull"

For sure. People being extremely bullish just because of a decent-but-not-so-big increase almost always makes me feel uneasy. I mean, a 30% increase from the bottom is great, but people are being so bullish as if it's guaranteed that the bear market is over.

[_act_]

Bitcoin falled to $16000, that price alone is low, the lowest price supposed to be $17000 but what that happened to FTX cause the further downturn when bitcoin has increased over $20000. No bad news again and the market started to become bull market is what that caused it. Most people are not selling but buying is what that caused it.