Why is the Bitcoin Price Up to Start 2023?

Why is the There are several theories that might explain the Bitcoin price action, but the truth is that we're generally left with more questions than answersBitcoin Price Up to Start 2023?

The truth to this question is that nobody really knows. If anyone tells you otherwise, run! But the cool thing about crypto is there's a lot of data readily available for ordinary people like us to review at our leisure.

One of the main appeals of crypto, in general, is the transparent nature of the industry. Side note: it makes it much harder to commit crimes using crypto because every transaction has a permanent, immutable paper trail. More on this later.

In any case, the Bitcoin price is now at the same level it was before the market was tanked by Sam Bankman Fried and FTX. Nothing like fraudulent management of user funds to make people run for the hills.

There are a few leading theories about why the Bitcoin price is up today.

1. The classic Stock to Flow model created by PlanB

This theory basically banks on the mathematics of how Bitcoin is created. In short, there is a fixed supply of Bitcoin (21 million), and the amount of Bitcoin that's distributed to the public is cut in half roughly every 4 years. If you look at the last 10 years, Bitcoin usually takes about a year or so to reach a bottom after its most recent all-time high. With the most recent ATH peaking in November 2021, it is at the "right time" for Bitcoin to slowly trend upwards. Of course, this is just a theory, and history doesn't always repeat itself.

2. There's some kind of manipulation going on

This one is more dubious, with fewer data points backing it up. The industry is so tiny that a few "whales" (individuals holding a significant market supply) can move prices when they buy or sell part of their assets. There's an article here by Cointelegraph that sheds some light on this, but in general, this is something we always have to consider in crypto.

3. We have no idea

This is the one I have been identifying the most with lately. There's no way to predict or time what's going to happen, and it's not always obvious "why" things are happening. It's not like there was some big news of a company like Apple adding Bitcoin to their balance sheet. This is just one of those examples of Bitcoin seemingly "not caring" about what the rest of the world thinks and doing whatever it wants.

In general, it's more interesting to see how many people adopt Bitcoin and what kind of use cases are made possible worldwide through this new technology. Price is just a game that happens along the way, but real engagement comes with the benefits offered to the world. More on this later.

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