Bitcoin has defied all odds and surged above predictions this month, making January 2023 its best month in a decade.
Bitcoin was charged with a 40% boost, a recovery that is part of a broader trend of investors’ rising risk appetite. However, some investors are still sceptical about the durability of the Bitcoin price uptick, considering economic worries and cautions from some global market segments.
Bitcoin buyers have maintained their position above the crucial $22.9K support level by consistently creating higher lows. This is a sign of the digital asset’s underlying strength, which has been on a solid upswing over the past 24 hours, rising from an intraday low of $22,908 to a high of $23.9K in that time.
Despite occasionally contradicting economic statistics and unsettling fourth-quarter profit releases from some of the biggest brands in the world like Microsoft and Intel, markets have stayed mainly optimistic during the past week.
Worries persist:Â Concerns have persisted, with some predicting a coming decline and perhaps new global BTC price lows as a wave of scepticism overtook the market. But since that gloomy downturn has yet to materialize, the upcoming days may prove to be a turning point for Bitcoin’s long-term trend.
The triggers aren’t hard to come by; this week, the US Federal Reserve will decide whether to raise interest rates again and chair Jerome Powell will also deliver a highly anticipated economic and monetary policy speech. A day later, the European Central Bank (ECB) will reach the same conclusion.
Other crypto’s performances:Â On Sunday, Ether, the second-largest cryptocurrency by market value, performed even better than BTC. Ether rose by about 5% at one point to trade over $1,650. In the past nine days, ETH has twice surpassed this ceiling.
Similarly, MANA, the native token of the 3D virtual reality platform Decentraland, and SAND, the native currency of the metaverse game Sandbox, recently rose more than 15% and 7%, respectively. Also, SOL, the token of the Solana blockchain, soared by 8.2%. The majority of other major cryptocurrencies by market cap spent much of Sunday firmly in the green.
Meanwhile, the tech-heavy Nasdaq which has a significant amount of tech, crypto-exposed stocks closed up the better part of a percentage point on Friday, continuing the bullish January trend in the equity markets. The S&P has reversed course from its lukewarm 2022 to reach its highest level in two months.
Even though titans like Amazon, Salesforce, and Microsoft have announced job cuts in anticipation of a slowdown in the economy, investors are cautiously optimistic about inflation and other macroeconomic risks.
