Bitcoin price has hit over the $21000 benchmark since Novermber 2022 demonstrating that cryptocurrency investors are pricing in more favourable market conditions in 2023
This latest bitcoin price rally demonstrates that cryptocurrency investors are pricing in more favourable market conditions in 2023 as inflation looks set to peak.
The latest data from Cointelegraph Markets Pro and TradingView followed BTC/USD after it hit an overnight high of $21,247 on Bitstamp.
The pair faced major skepticism after making some serious lost ground during the week, with analysts warning that a retracement could happen at any moment.
High-profile crypto entrepreneur Nigel Green of deVere Group told Tech Business News Bitcoin price has jumped yet again– another 3.8% in the last 24 hours – on top of gains made through the week.
“It’s estimated that around $70 billion has been traded in crypto over the last day alone.” said Green,”
“We are technically still in a bear market, but the signs are the bulls are beginning to take back control.
“The relief rally began on the back of the latest U.S. inflation data which was released on Thursday. It revealed U.S. CPI slowed to 6.5% in December from 7.1% the previous month.”
“As inflation in the world’s largest economy is, it seems, being brought under control thanks to the Federal Reserve’s aggressive interest rate hikes, it makes it more likely that the central bank will begin to take its foot off the brake of the economy by slowing the hikes.”
“The Fed will continue hiking rates for a while yet (albeit at a slower pace) as they can’t afford to slide backwards. Officials will continue to sound hawkish too in order to avoid over-excitement in the markets and wider complacency.” he said.
The asset classes that have fallen hardest due to central banks’ policy tightening in 2022 may be the strongest performers during the unwinding of the rate hike programmes, predicts the deVere CEO.
Green says as the central banks begin to stop tightening the screws, and the cyclical upturn gets underway, these asset classes could outperform others.
“Knowing they are likely to be rewarded for doing so, many crypto investors are positioning themselves now for the pivot.”
The developments will be welcomed by crypto enthusiasts after Bitcoin lost over 60% of its value in 2022, with many other tokens experiencing similar losses, due to the bleak macro outlook, the collapse of several crypto firms, and greater regulatory scrutiny.
“Of course, the crypto market will not go in a straight line – no market ever does – but we expect the bears to go into hibernation and bulls are ready to run.” said green
