Bitcoin (BTC) Is On Track To Have The Best January In A Decade Since 2013.

Following a harsh drop in 2022, Bitcoin (BTC) began 2023 on a stable foundation. The world’s largest cryptocurrency has already increased by 40% this month and is on track to have the Best January in a decade since 2013.

The total crypto market has grown by $280 billion in January. While Bitcoin and Ethereum have had a 40% price increase, other smaller altcoins, such as Solana and Axie Infinity, have more than doubled in value this month.

The latest recovery in the broader crypto market coincides with forecasts of gradual Fed interest rate hikes. Furthermore, when high inflation subsides, the Fed is likely to reduce borrowing prices fairly soon.

The surge this month indicates that the cryptocurrency market is recovering from the vibrations generated by the collapse of the crypto exchange FTX. The market is eager to mend the wounds of a huge liquidity crisis caused by the collapse of FTX and other crypto lenders such as Genesis, among others. Noelle Acheson, creator of the newsletter “Crypto Is Macro Now,” stated:

January “feels like a month of new beginnings, with emerging clarity as to bankruptcy proceedings, corporate restructurings and market fundamentals pointing to the bottom being behind us”.

Will Bitcoin’s Comeback Last?

Bitcoin, the world’s largest cryptocurrency, has a close link with technology equities. Furthermore, the current rise in the BTC price coincides with the recent rebound in the tech sector. Some economists have also warned that market rate hikes may go longer than predicted.

Last week, Bank of America Corp. strategists led by Michael Hartnett predicted that the return in Bitcoin and other speculative assets “would certainly reverse” if wages, oil, and consumer price increases to disrupt the narrative of a possible “soft-landing”. Fed Chair Jerome Powell has also signaled that interest rates may remain high for some time.

Optimists, on the other hand, are betting on the current momentum and expect Bitcoin to reach $25,000 during this ongoing run.

For more articles visit : Cryptotechnews24

Source