After a robust week for bitcoin (BTC) and plenty of other leading cryptocurrencies, traders at the moment are looking out for indicators of what could spark the following bull run.
After being battered by losses for the vast majority of 2022, bitcoin and other cryptocurrencies are on the rise in 2023, resulting in predictions that the so-called crypto winter has thawed.
Bitcoin has begun the brand new 12 months on a vivid note. On Saturday, Bitcoin surpassed $21,000 for the primary time in 60 days. On the time of writing, BTC is trading at $21,090, up 25% within the last seven days, data by Coingecko show.
Image: Watcher Guru
Bitcoin Could Still Climb Higher
If this week’s US economic data shows that the Federal Reserve could also be nearing the tip of its rate of interest hikes, the costs of major cryptocurrencies could soar.
Ed Moya, a senior market analyst at Oanda, wrote on Friday:
“Wall Street could be very confident that the tip of the central bank’s tightening cycle is upon us and that’s providing some underlying support for crypto.”
Probably the most recent Bitcoin rise continues to be a far cry from the alpha coin’s November 2021 record high of $68,990. Nonetheless, this has provided market participants with enthusiasm.
The entire cryptocurrency market lost over $1.4 trillion in value last 12 months due to liquidity troubles, bankruptcies, and the collapse of crypto exchange powerhouse, FTX.
It didn’t take long for the so-called “contagion” to make its presence felt in all corners of the crypto market after the wave of insolvencies.
Bitcoin dropped to a two-year low of $15,480 because the FTX epidemic engulfed the cryptocurrency market.
Whale Accumulation Boosts BTC Price
This spike in Bitcoin’s value is probably going fueled by a variety of causes. There’s a rising expectation amongst market participants that the Federal Reserve would follow a more benign monetary policy by halting rate of interest hikes or decreasing rates within the near future, possibly as early as the tip of this 12 months.
Last 12 months, the Federal Reserve raised rates of interest seven times, sending dangerous assets similar to equities and tech stocks to slip.
SHIB total market cap at $5.8 billion on the day by day chart | Chart: TradingView.com
As well as, data released by cryptocurrency company Kaiko indicates rising purchasing optimism amongst major bitcoin purchasers, commonly often called “whales,” which analysts say helps to support current high levels of demand.
Cryptocurrency whales, or crypto whales, are individuals or organizations that possess enormous amounts of a specific cryptocurrency.
Meanwhile, although bitcoin has gained a pleasant boost initially of 2023, along with risk assets as mentioned above, market observers say the leading coin is unlikely to retest its all-time high of $69,000, however it can have reached a bottom.
Featured Image from BW Businessworld