Bitcoin On Track For Best January Since 2013 – Ethereum May Soon Catch Up

Bitcoin BTC/USD It’s been a strong start to the year and it’s on track Best January since 2013according to statistics.

As we entered the new year, bitcoin was valued at around $16,500, but in about four weeks, it has already climbed above $23,500, resulting in a return on investment of around 41%.

This is especially important because in the past, January has typically resulted in negative returns for bitcoin investors.

Looking at the month of January over the last 10 years, bitcoin investors have made negative returns in six of them, while in the other four, they have made double-digit positive gains.

The only exception was in 2013 when the return was a slightly higher 44%.

Read also: Why the White House Is Urging Congress to Increase the Powers of Cryptocurrency Market Regulators

Ethereum ETH/USDOn the other hand, there has not been much success this month.

The largest altcoin was trading in the $1,100-$1,200 bracket in early January.

At the time of writing on Sunday, it was seen hovering around $1,648.

As a result, its 2023 return on investment stood at 34%, while it posted gains in the 50%-80% range in January 2021 and 2018.

Despite the performance of Ethereum this month, experts predict that the trend may change in the near future.

This is due to the upcoming Shanghai upgrade, which is scheduled for the first quarter of 2023.

The community is slowly changing rapidly as the upgrade is expected to bring significant improvements to the scalability and security of the network.

Additionally, Ethereum recently re-entered deflationary territory earlier this week thanks to an increase in NFT sales.

Last year’s EIP-1559 upgrade introduced a base-fee burning mechanism with every Ethereum transaction, which helped set the stage for Ethereum to become deflationary.

If the amount of tokens burned remains greater than the number of tokens issued, the price is likely to rise steadily as a result of decreasing availability.

From a technical perspective, bitcoin is also gearing up to extend its rally.

According to technical analyst Noel Saldanha, a golden cross on the daily chart is on the verge of materializing, which is a positive sign.

A golden cross is usually seen when a shorter-term average line crosses above a longer-term average line, indicating upward movement.

Therefore, if the 50-day moving average (DMA) ends up breaking the 200-DMA, another price uptrend phase can be anticipated.

next: New York Takes a Giant Leap Towards Cryptocurrency Adoption With New Bill

Photo: shutterstock

Source link

Leave a Comment