The cryptocurrency market sustained its profitability which started in early January. The crypto market which has entered into accumulation ahead of its next phase enjoyed a great start this year, recording its best January since 2013.
Leading the pack, the world’s largest digital currency by market value, Bitcoin which traded slightly above $24,000 on the first of February is now stable at around $23,500 at the time of writing this report. This represents more than 40% increase since the beginning of this year, data from CoinDesk shows.
Riding on the momentum, a number of Altcoins including Matic, Ethereum, Binance Coin, Mana and Harmony have also recorded double-digit gains.
Investors King understands that while most of the cryptocurrencies have retraced slightly downward and now trading sideways, it could be an accumulation phase ahead of the next market direction.
As earlier reported, several factors including the cooling off of inflation in the United States are the primary drives for the new rally after the crypto market suffered one of its major corrections in 2022.
It could be recalled that after the bull run of 2021, the cryptocurrency market lost more than $2 trillion off its market capitalization.
After peaking at $68,000, the flagship cryptocurrency, Bitcoin fell below $16,000 in November 2022 while most of the Altcoin shed more than 50% of their gains.
Additionally, several events such as the collapse of one of the largest crypto exchanges, FTX and the Fall of the Terra Network added to the pain felt across the cryptocurrency market.
However, the crypto community is feeling a new hope with the renewed rally and the stability in the market.
In addition, a CNBC article also predicted that 2023 holds a huge prospect for the cryptocurrency and stock markets if the Fed and Central Banks slow down the pace of monetary tightening.
“If the Fed slows down the pace of monetary tightening, or cuts the benchmark rate, it could serve as a boon to risk assets, including cryptocurrencies and stocks, and investor expectations that this slowdown will materialize could certainly prove bullish”. The article stated.
