After being battered by losses for the majority of last year, speculation that the so-called
crypto winter, the equivalent of a bear market in the world of digital assets, is over has
been sparked by the rise of bitcoin and other cryptocurrencies in 2023.
The most well-known cryptocurrency in the world, Bitcoin, has increased by 25% over
the previous month and is currently trading above $20,000 for the first time since
November, when Sam Bankman-trading Fried’s site FTX collapsed sending shock waves
through the industry.
The second-ranked cryptocurrency, Ethereum, is up more than 30% in the last month
and was trading above $1,500 on Monday.
“Wall Street is very confident that the end of the Fed’s tightening cycle is upon us and
that is providing some underlying support for crypto. Unless we hear some strong
hawkish pushback from the Fed or if commodity prices surge, crypto traders should not
be surprised if Bitcoin is able to extend its recent gains,” Ed Moya, a senior market
analyst at Oanda was quoted by CNN.
A little under $69,000 was the peak price of bitcoin in November 2021, more than a
year ago. When FTX contagion hit the market for digital assets two months ago, bitcoin
fell to a two-year low of $15,480.
Investors in cryptocurrencies are hopeful that the worst of the bear market, which has
driven Bitcoin down from its record high over $69,000 in November 2021, may be over.
Numerous macroeconomic indicators point to a slowdown in global inflation rates,
which has improved the state of the world economy. Additionally, investor mood has
significantly improved, particularly since China opened its foreign borders.
In addition, major players in the financial services industry including Morgan Stanley,
BlackRock, MicroStrategy, and others have been building up their Bitcoin holdings.
They have maintained a bullish outlook on bitcoin, and as a result, this type of whale
accumulation has supported bitcoin prices.
Bitcoin rallies as crypto markets rebound
