Bitcoin is back to recapture the $20 thousand mark, leading to a general uptick in the crypto markets over the past week. Bitcoin (BTC) continues its rise in 2023, with the cryptocurrency increasing in value for the first time since the collapse of FTX in November. Despite a more than 20 percent increase in value in the first two weeks of this year, the cryptocurrency is still at the low end of a bear market.
Meanwhile, the second-largest cryptocurrency ether (ETH) is also up significantly, up more than 20 percent year-to-date and threatening to top $1,500 for the first time since November. Cryptocurrency-related stocks have also benefited from this rise in prices, with Coinbase (COIN) up 39 percent and Marathon Digital Holdings (MARA) up 76 percent.
While traditional markets have also been bullish this week, it is important to note that Federal Reserve policy is still an important factor to consider. However, there are also other global issues that can affect the performance of cryptocurrency investments.
China’s economic reopening, the pace of economic growth and corporate profits in the United States, and positive real interest rates are just a few examples of factors that will compete for investors’ attention. It is important to consider these together in order to have a complete picture of the current economic landscape and make informed decisions in the cryptocurrency market.
Despite this, Nicolas Colas, co-founder of market analysis firm Data-Trek Research, says that none of this guarantees that 2023 will be a good year for riskier assets, but it will certainly be better than last year. would be much more common. ,
The total crypto market capitalization is approaching $1 trillion in value and investor sentiment is improving. Investor sentiment about the market reached a monthly high, according to the Fear and Greed Index, a cryptocurrency-specific metric that measures sentiment using five weighted sources.
Bitcoin has proved many technical analysts wrong in the past, despite the current conditions and bullish run at the current price. Traders with a lower risk appetite may consider keeping an eye on increasing trading volume at higher prices as to whether or not bitcoin eventually returns to a bull market.