Bitcoin Price Inches Up Despite Recent Turbulence

Bitcoin has seen a tumultuous year in 2022, with prices dropping over 60%. This was driven lower by a series of high-profile company failures and a bleak macroeconomic climate. In addition, Luke Dashjr, an OG Bitcoin developer, has reported that his PGP key was compromised, resulting in the theft of over 200 BTC—worth upwards of $3.6 million.

Despite this, Bitcoin prices have been slowly recovering and have just kicked off 2023 with modest gains. While the crypto market has been relatively stagnant over the past week, Bitcoin and Ethereum have been able to make some small gains. This morning, Bitcoin inched up but remains in its recent, narrow range, while other major cryptos saw green.

CoinDesk's Sam Reynolds explains why crypto exchange token prices continue to respond to news events and not what the SEC and other regulators say. He explains that news events like the PGP key theft can cause panic and a selloff across the market, resulting in price volatility.

Some miners have held onto the Bitcoin they mined, opting instead to finance operations with debt and other capital. This has worked really well for miners in the long run, as it allows them to keep their tokens without having to trade them.

It's uncertain how the Bitcoin market will react in the coming weeks, but for now, prices are slowly inching up despite the recent turbulence.