Will the price of bitcoin wake up in 2023?

The volume and volatility for bitcoins (BTC) are currently at all-time lows. Bitcoin, the mothership of the cryptocurrency industry, doesn't seem to take the term crypto winter with a grain of salt, and has sunk into a deep lethargy. Can we expect a resurrection of bitcoin and the cryptocurrency sector in 2023? And if so, how much patience does it require?

Bitcoin hibernation

Low volume and low volatility are generally not a good sign for the bitcoin rate. In the past, such lackluster price activity often heralds further price declines. What is certain is that currently bitcoin is an asset that investors would prefer not to touch.

Last year we saw a massive 76% drop from the $69,000 high to the current level just under $17,000. A further drop in prices however, it cannot be ruled out and is certainly not unlikely.

Despite the possibility of further price declines, it can be argued that the pain of a price capitulation has already been widely felt. The real pain of a bear market, however, is the endless waiting for a price reversal and awakening. This second form of capitulation; the time-based capitulation it's a little less talked about, but still very relevant. It FTX failure has withdrawn a lot of liquidity from the cryptocurrency sector and investors are not eager to pump their capital into a fragile sector. So things are not looking rosy for bitcoin in the short term. Yet bitcoin is the most liquid asset in the cryptocurrency industry. However, compared to other financial markets such as the S&P500, activity is at a low ebb.

However, the current sore wound is above all the time that is missing before a possible trend reversal and the immense patience that this wait requires. At this point the patience of traders and hodlers is tested. A recession is looming and until the macroeconomic situation changes, the bitcoin business will remain sluggish. But one thing is certain; patience in a bear market pays off.