Bitcoin Booms! Q1 of 2023 Marks Best Quarter in 2 Years

Bitcoin’s Record Quarter

• Bitcoin enjoyed three consecutive months of growth in Q1 of 2023, with its overall jump since the beginning of the year being over 70%.
• The digital asset has been seen as a ‘flight to safety’ due to banking turbulence and a shift to ‘risk on’ assets.
• Despite this, analysts warn that a recession could still pressure crypto prices.

Overview of Bitcoin’s Record Quarter in 2023

It appears that for bitcoin, 2023 has been a year of vast turnaround. Reports showed that the world’s number one digital currency enjoyed three straight months of solid gains, and it doesn’t appear to be showing serious signs of slowing down. This is very much different from what was witnessed in 2022, when crypto lost more than $2 trillion in valuation after assets like bitcoin dropped by 70% or more from their previous all-time highs.

Reasons Behind Bitcoin’s Price Increase

Jeff Cantwell – an equity analyst at Wells Fargo – explained that the rally has continued in March even after recent bank closures due to three underlying reasons: crypto as a ‘flight to safety’ given banking turbulence; positioning (short covering); and a shift ‘at the margin’ by investors to ‘risk on’ as prospects of a Fed pivot have increased. There is much distrust surrounding standard finance now, leading many people to turn towards more speculative (and riskier) assets like BTC in order to keep their finances safe.

Potential Impact of Recession on Crypto Prices

Callie Cox, an analyst at investment firm e-Toro, warned that while bitcoin still seems to be performing well if growth stays healthy as well, high rates are still an obstacle should there be a recession. This would mean that crypto prices could suffer due to its retail-dominated nature.


Overall, it appears that Q1 of 2023 was an incredibly successful quarter for bitcoin and other cryptocurrencies alike thanks primarily due to banking turbulence causing people looking for ‚flight‘ options and a shift towards ‚risk on‘ investments. However, analysts warn that there may still be potential impacts if there is an economic recession and high rates remain prevalent.