Bitcoin (BTC), the flagship cryptocurrency, despite a volatile crypto market in 2022 with numerous ups and downs, continues to be an investor favorite in 2023.
Indeed, the start of 2023 has brought a significant change in Bitcoin’s value, as now you can buy 42% fewer SATS (the smallest unit of Bitcoin) for one U.S. dollar than at the beginning of the year. At the start of 2023, investors could buy around 6042 satoshis for a dollar. However, as of today, March 30, the same dollar would only purchase roughly 3497,57 satoshis, according to data retrieved by Finbold from Crypto.com.
Notably, satoshis are the smallest unit of Bitcoin, named after the pseudonymous creator of the cryptocurrency, Satoshi Nakamoto. A satoshi is equivalent to 0.00000001 Bitcoin, meaning that 100 million satoshis are equal to one Bitcoin. The value of a Bitcoin is determined by the market demand, and with a limited supply of 21 million, the currency is highly valued by investors and traders.
The drop in satoshis per dollar is not entirely surprising, given that Bitcoin has climbed over 70% since the start of the year, meaning crypto traders have ‘less bang for their buck.’ Bitcoin was trading at $16,500 on January 1, compared with the current price, BTC is changing hands at around $28,730.
Notably, Bitcoin’s price briefly climbed above $29,000 on March 30 as the flagship digital asset continues its push to reclaim the $30,000 psychological level. As things stand Bitcoin has a total market capitalization of $549 billion.
Given that a U.S. interest rate pause could kickstart a Bitcoin rally in May, crypto traders could well get fewer satoshis for their dollar in the near future.
However, if Chief Market Strategist at InTheMoneyStocks.com Gareth Soloway is to be believed, Bitcoin could first plummet back to as low as $13,000 as the financial system becomes more stable before experiencing another rally.
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