Bitcoin’s 2023 price action driven by the desire to regain losses, according to professional trader

Bitcoin’s 2023 price action driven by the desire to regain losses, according to professional trader

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Cointelegraph Episode 7 Crypto Trade Secrets podcast now it’s live. This week’s episode features an interview with cryptocurrency trader Zoran Kole, who goes by @Captain_Kole1 on Twitter. Kole shared his thoughts in response to a series of questions asked by host Benjamin Pirus during the taping of the episode on March 1, including his thoughts on what he believes has impacted the Bitcoin price the most (BTC) so far in 2023 (as of the show’s taping), and whether that can continue to be the case for the rest of the year.

Bitcoin started 2023 trading between $16,000 and $17,000, according to Cointelegraph’s BTC Price Index. The asset was found near $24,000 in late January and topped $25,000 in February. The coin subsequently dipped back below $20,000 in March, but has since rallied beyond $26,000.

“There have been rumors that Binance is buying a large amount of Bitcoin using its BUSD,” Kole said. USD Binance (BUSD) is a stablecoin under the Binance brand but issued by Paxos Trust Company, and faced regulatory uncertainty in February. Binance CEO Changpeng Zhao has stated that Paxos fully owns and oversees BUSD. Kole, however, believes that the 2023 price action so far may be the result of prolonged price suppression and people’s desire to recoup their 2022 losses:

“To put it more simply, in 2023, I think the lure of coming back in a trade is one of the reasons prices have skyrocketed since the beginning of the year.”

However, Kole doesn’t exactly think that logic will stay in play all year. He explained:

“I expect a lot of limited range behavior to happen. So all the buyers who were able to buy $15,000, $16,000, $17,000 are probably looking to distribute somewhere in the top $20,000, bottom $30,000. So I think we’re going to see a bit of a chop towards the end of the year.”

Kole also answered several other questions during the episode, including his thoughts on possible future BTC cycles.