Bitcoin (BTC) has experienced a significant rally since the beginning of 2023. After a challenging year in 2022, the leading cryptocurrency has partially recovered and rewarded investors this year.

Currently, Bitcoin is up 134.32% in the last 329 days since the first week of the year. This means that a $1,000 BTC investment would now be worth $2,343.2. Consequently, a $1 million initial investment in Bitcoin in January would now be worth $2.43 million, resulting in substantial gains for investors.

At the time of writing, Bitcoin opened the first weekly candle of 2023 at $16,552 and is currently trading at $38,792, according to TradingView.

2021 Bitcoin Investments Still Show Losses

However, it is important to note that this year’s rally would still require a further 77% increase to reach 2021’s levels.

Out of the 52 weeks in 2021, only six weeks had Bitcoin trading at lower prices than the current zone. This means that purchases made during the other 46 weeks would still be at a loss.

For instance, a $1,000 investment in Bitcoin during November’s all-time high of $69,000 would now be worth $562.3, representing a loss of 43.77%. This loss would have significantly affected a million-dollar investment, reducing its value to just over half.

Both bullish and bearish scenarios highlight the importance of proper risk management and having a clear investment strategy when dealing with Bitcoin.

Cryptocurrency analysts anticipate that Bitcoin will reach higher levels in 2024. The price action of Bitcoin will be influenced by its ability to maintain increased demand amidst the constantly growing supply from mining.

If Bitcoin manages to regain the same speculative demand it had in November 2021, it could reach a trading price of $66,574 per coin, as previously reported by Finbold.

Disclaimer: The content on this site is not intended as investment advice and should be viewed as speculative. Investing involves risk, and your capital is at risk.