THE Bitcoin (BTC) surprised many investors already at the beginning of 2023. After closing with a drop of more than 65% in the year, the cryptocurrency rises by almost 40% and consolidates itself as the best asset of the year to date.
Nevertheless, the cryptocurrency also walks to beat own records. THE Bitcoin should soon close its best January since 2013, with analysts feeling that monetary tightening in U.S and the crypto sector crisis are nearing their end.
Bitcoin is already up nearly 40% at the start of 2023, a gain for the first month of the year that has only been surpassed twice before, when the crypto was in its early years.
This should easily be the strongest January for Bitcoin since 2013, even with the retreat of about 3% this Monday (30).
The fear and optimism index also features values not seen before since the last bull run in November 2021, where bitcoin reached its all-time high of $69,000.
The altseason, the high season for alternative cryptocurrencies to Bitcoin, also seems to have arrived earlier. Cryptocurrencies like AXS, GALA and APT add around $280 billion to the crypto market cap, according to figures from CoinGecko.
Crypto market no longer wants to listen to the traditional
This week, the Federal Open Market Committee (FOMC) of the Federal Reserve performs the first this year’s monetary policy meeting. The agency’s positioning can be crucial for the direction and continuity of the market’s rise.
Fed Chairman Jerome Powell may indicate to investors that he plans to keep interest rates high for some time. As a result, risk appetite may decrease.
However, Bitcoin’s correlation with US tech indices – assets that are directly linked to investors’ risk appetite – is waning.
Bitcoin has been behaving much more like gold than with the Nasdaq, for example. And that also puts investors on their toes.
After all, to what extent the Nasdaq index still influences the price of the crypto market is an issue at hand.
Source: Moneytimes
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.
