In the last 7 days, not only BTC and ETH but almost all top 25 cryptocurrencies recorded a major hike in their prices
The positive inflation rate, retracting DXY index, and high hopes from the upcoming FOMC meeting are creating a positive sentiment in crypto markets
Heightening regulations, increasing energy prices, and FTX liquidations could also negatively impact the market trend
24 hours, ETH by 22%, BNB by 17.88%, XRP by 16.22%, and Solana by a whopping 64.62% in the last 7 days.
Last week has been quite a ride for crypto investors as the markets went on to break the negative sentiments of the last two months. After the FTX collapse, when major crypto projects had to face the backlash, the market volume had to severely bleed. However, unlike the past market collapses, BTC and ETH acted as the leading anchors for crypto markets. However, FTX’s massive holding of Solana was dumped all the way, pushing its prices to an all-time low.
But since the last week, not only BTC and ETH but almost all top 25 cryptocurrencies recorded a major hike in their prices. This includes the worst hit Solana which has recorded a whopping 64% hike in the last 7 days crypto update.
Many positive indicators have come together to create a week-long positive rally for cryptocurrencies. This includes a downtrend in the U.S Dollar Index that moved from 105 to 102 in the last 7 days. Apart from that, Consumer Price Index (CPI) released by the Labor Statistics has indicated that the inflation for urban consumers reduced by 0.1%. This acted as a great signal for crypto traders, resulting in a massive pump in almost all the leading cryptocurrencies in the market.
With the CPI data, it is expected that the Fed rates will not be raised over 0.5% which will help Bitcoin to maintain its levels in the upcoming weeks. Bitcoin halving is also scheduled for 2024 which happens every fourth year. Bitcoin halving reduces the miners’ cut eventually reducing its supply and increasing its price. Bitcoin’s previous halving has positively impacted its prices and the same is expected from the upcoming one.
Leading finance experts are of the opinion that cryptocurrencies will not have a great year in 2023 as the heightening regulations as well as increasing Fed rates will not allow cryptos to rebound.
Standard Charted’s experts have predicted that the price of Bitcoin could fall up to $5,000 in 2023 as the energy prices are at an all-time high and investor trust is at an all-time low. However, this vastly differs from the opinions of VanEck experts that have decided on the $12,000 mark for BTC prices in 2023. Standard Charted is a leading international bank whereas VanEck is a leading fund manager.
The price of cryptocurrencies depends on various indicators, including the variable Fed rates. If inflation peaks in upcoming months, all markets including cryptocurrencies will have to face the backlash. The next Federal Open Market Committee (FOMC) meeting is scheduled for 1st-2nd Feb and a positive decision could increase the BTC equities even higher.
A further retraction in U.S Dollar Index (DXY) could also increase the chance for Bitcoin to touch new levels, however, the opposite is also possible if DXY spikes. At the same time, FTX liquidators have recovered over $5 billion worth of assets including cryptocurrencies that they are asked to liquidate by March 15, 2023. The impacts of these liquidations will surely be felt by the crypto markets.
For now, we can say that cryptocurrencies are charging towards a bull run but we will wait for some more time to know if the crypto winter is nearing an end. Keep following CoinGabbar to get catch all the latest updates on crypto markets.
Also, Read- 24 Hrs Crypto Update, Jan 13: Global Crypto Market Is Extremely Bullish
