This month, Bitcoin (BTC) has seen an increase of 40%, making it the best start to the year since 2013. This is due to the weakening of the U.S. dollar.[0] Over the course of the past month, Bitcoin has surged more than $6,000, and is presently priced at over $23,000.[1] For now, the value of the world’s first cryptocurrency is 66% below its all-time high (ATH).[1]
The rally has been powered predominantly by U.S. buyers, observers say, and the recent trend brings high hopes for many investors.[2] The Crypto Fear & Greed Index, the classic crypto market sentiment indicator, signals that the mood among Bitcoin and altcoin investors is now predominantly one of “greed”.[3]
Technically, it appears that Bitcoin is preparing to continue its upward trend.[4] On the other hand, Bitcoin could undergo the gold cross pattern, which could indicate sustained increases for the original cryptocurrency.[5]
The cryptocurrency sector is much relieved by the increase in the cost of Bitcoin (BTC) and the corresponding rise in the worth of crypto currency stocks.[6] It has made mining profitable again, with Bitcoin now trading above $22,000.[7]
The bullish sentiment of institutions is clear from the increased demand for bitcoin futures listed on the Chicago Mercantile Exchange.[8]
Ethereum (ETH/USD), on the other hand, has not seen as much success this month.[4] In the early days of January, the biggest altcoin was trading between $1,100 and $1,200.[9] As of Sunday, the figure was hovering around $1,648.[10] As a result, its 2023 return on investment (RoI) stood at 31%, while in January 2021 and 2018, it registered gains in the 50%-80% bracket.[9]
Analysts are forecasting that Ethereum’s performance could shift in the upcoming weeks, even though it has been doing well this month.[4] The Shanghai upgrade, set to take place in the first quarter of 2023, is the cause of this.[10]
A comeback from last year’s sharp plunge is part of a larger resurgence in risk appetite, as people anticipate central banks to lower the rate of interest increases and maybe even lower borrowing costs by the end of the year, as inflation levels off.[11]
Despite this, there are many skeptics who are unconvinced that the resurgence of cryptocurrencies and technology stocks will be sustained.[12]
0. “Bitcoin on Track for Best January Performance in a Decade” CoinDesk, 27 Jan. 2023, https://www.coindesk.com/video/bitcoin-on-track-for-best-january-performance-in-a-decade/
1. “Bitcoin went up 37% in the last month” Notebookcheck.net, 26 Jan. 2023, https://www.notebookcheck.net/Bitcoin-went-up-37-in-the-last-month.685836.0.html
2. “Bitcoin on Track for Best January Since 2013, Led by Bullish Trading During US Hours” Yahoo! Voices, 27 Jan. 2023, https://www.yahoo.com/now/bitcoin-track-best-january-since-085036816.html
3. “Best January since 2013? 5 things to know in Bitcoin this week” Cointelegraph, 30 Jan. 2023, https://cointelegraph.com/news/best-january-since-2013-5-things-to-know-in-bitcoin-this-week
4. “Bitcoin On Track For Best January Since 2013 — Ethereum May Soon Catch Up” Benzinga, 29 Jan. 2023, https://www.benzinga.com/markets/cryptocurrency/23/01/30615790/bitcoin-on-track-for-best-january-since-2013-ethereum-may-soon-catch-up
5. “Crypto market resurgence produces over 44,000 new Bitcoin millionaires” Finbold – Finance in Bold, 28 Jan. 2023, https://finbold.com/crypto-market-resurgence-produces-over-44000-new-bitcoin-millionaires/
6. “Bitcoin Prices Retain Bulk Of Gains After Climbing To 5-Month High” Forbes, 23 Jan. 2023, https://www.forbes.com/sites/cbovaird/2023/01/23/bitcoin-prices-retain-bulk-of-gains-after-climbing-to-5-month-high/
7. “Bitcoin Mining Is Back in Profit Following Bitcoin’s Price Rising to $18,800” BanklessTimes, 26 Jan. 2023, https://www.banklesstimes.com/news/2023/01/26/bitcoin-mining-is-back-in-profit-following-bitcoins-price-rising-to-dollar18800/
8. “Bitcoin heads for best start to year since 2013 as risk appetite grows” Markets Insider, 27 Jan. 2023, https://markets.businessinsider.com/news/currencies/bitcoin-crypto-price-fed-rate-hike-inflation-federal-reserve-cryptocurrency-2023-1
9. “Bitcoin On Track for ‘Best’ January in 10 Years” Watcher Guru, 26 Jan. 2023, https://watcher.guru/news/bitcoin-on-track-for-best-january-in-10-years
10. “Bitcoin On Track For Best January In A Decade” The Dales Report, 30 Jan. 2023, https://thedalesreport.com/crypto-nfts/bitcoin-on-track-for-best-january-in-a-decade
11. “Bitcoin is up 40 percent in January as the crypto market jumps $280 billion” know news, 30 Jan. 2023, https://knownews.in/tech/bitcoin-is-up-40-percent-in-january-as-the-crypto-market-jumps-280-billion
12. “Bitcoin Barrels Toward Historic January as Crypto Market Jumps by $280 Billion” Yahoo! Voices, 30 Jan. 2023, https://www.yahoo.com/now/bitcoin-barrels-toward-historic-january-025852476.html