Largest cryptocurrency by market capitalization, Bitcoin Bitcoin/USD It surged past the psychologically significant barrier of $21,000. Saturday’s move spurred a market slump that has been rattled by the collapse of several high-profile companies, including cryptocurrency exchanges. FTX FTT/USD.
Rise in prices of major cryptocurrencies such as polygon Matic/USD When Solana Sol/US Dollar and memecoins like dogecoin Doge/US Dollar When Shiba Inu SHIB/USDfueled by optimism that digital currencies may have bottomed out.
Bitcoin has risen above $20,000 for the first time since November 8, 2022, marking the 11th consecutive day of gains.
Other notable cryptocurrencies such as ethereum Ethereum/USD When Cardano ADA/USD It also marked the first time since November that the cryptocurrency market capitalization has surpassed $1 trillion, making significant gains.
The current surge in Bitcoin’s value comes after the Labor Department released data showing top-line inflation rose 6.5% in December from 7.1% in November.
On Thursday, Federal Reserve policymakers expressed relief that inflation continued to fall in December.
The bear market never ends
Andy Liangthe chief digital adviser of the Mongolian Productivity Organization, told Benzinga that investors should be cautious and not get too bullish on digital currencies.
“This does not mean the bear market is over. First, the lack of Bitcoin trading volume around $18,000 and RSI indicates that Bitcoin is overbought and the rally is short-lived. Second, massive layoffs by crypto firms and new SEC claims genesis When Gemini For unregistered offers and crypto securities sales, it looks like it will take longer to see a real sustainable bull market,” he says.
He added that Bitcoin and other cryptocurrencies tend to respond more quickly to macroeconomic shifts and changes than equities, and may be witnessing such shifts now.
“We are seeing more investors putting in more capital this week. Overall, this is still a positive sign for the market,” he adds.
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Mainstream adoption leads to more stability
according to Scott Trip, a member of the non-profit organization redecentralise.com, Bitcoin’s increasing mainstream acceptance and institutional adoption will lead to price stability over time. The current rise is driven by speculative mania and may not be sustainable in the long term.
Bitcoin Could Rise Further Through 2024
Raj KapoorHe is the founder of the India Blockchain Alliance.
According to Kapoor, this event is likely responsible for the current positive sentiment and upward trend in Bitcoin’s value.
“We also feel that big investors and bitcoin whales have resumed holding bitcoin. It clearly shows that investors are hoarding bitcoin, which could be a hint of a recovery in the bitcoin price.
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