largest cryptocurrency by market capitalization, Bitcoin BTC/USD Peaked above the psychologically important hurdle of the $21,000 mark. Saturday’s move brought respite to markets that were sluggish following the collapse of several high-profile companies. including cryptocurrency exchange ftx ftt/usd,
Rally in prices of major cryptocurrencies such as polygon matic/usd And solana SOL/USD and like memecoins dog coin doge/usd And Shiba Inu shib/usdDriven by optimism that digital currencies can bottom out.
This is the first time since November 8, 2022, that bitcoin has crossed $20,000, having experienced 11 consecutive days of upward momentum.
Other notable cryptocurrencies such as Ethereum ETH/USD And cardano ADA/USD It also saw substantial gains, pushing the total market capitalization of the cryptocurrency market above the $1 trillion mark for the first time since November.
The current jump in bitcoin’s value comes after the Department of Labor released data that showed top-line inflation rose 6.5% in December. 7.1% in November.
On Thursday, Federal Reserve policymakers Express It is a matter of relief that the inflation rate continued to decline in December.
the bear market is not over
Andy LianThe chief digital advisor of the Mongolian Productivity Organisation, tells Benzinga that investors should take a cautious approach and not become too bullish on the digital currency.
“This does not mean the bear market is over. First, a lack of bitcoin trading volume around $18,000 and the RSI showing that bitcoin is overbought suggests that the rally may be short-lived. Secondly Mass layoffs by crypto companies and new SEC charges Produce And Gemini For the unregistered offering and sale of crypto asset securities it looks like it will take longer to see a real sustainable bull run,” he says.
He added that bitcoin and other cryptocurrencies react more quickly to macroeconomic changes and shifts than stocks and we are currently seeing such a shift.
“I see more investors pouring in more capital over the week. Overall, it’s still a positive sign for the market,” he added.
Read also: SingularityNET’s AGIX Token Surges 245% — Is This the Next Big Thing in AI?
Mainstream adoption will bring more stability
According to scott trippA member of redecentralise.com, a non-profit organization, opined that while increasing mainstream acceptance and institutional adoption of bitcoin will further stabilize its price over time, the current rally is driven by speculative frenzy and may not be sustainable for long.
Bitcoin could grow further in 2024
Raj A KapoorThe founder of the India Blockchain Alliance, predicts that 2024 could be the year when bitcoin experiences a significant price increase due to the halving event.
According to Kapoor, this event could be responsible for the current positive sentiment and upward trend in the value of bitcoin.
“I also think that large investors or bitcoin whales have restocked their bitcoin holdings. Large bitcoin whales are holding between 1,000 and 10,000 BTC in their wallets, according to data from Sentiment, which clearly shows that that investors are stocking up on bitcoin, which could be a sign of a correction in bitcoin’s price,” says Kapoor.