Bitcoin has had a strong start to the year, seemingly ignoring last year's negative sentiment and posting its longest winning streak since November of 2013, according to data compiled by Bloomberg.
The price of the cryptocurrency most traded in the world increased more than 25 % from the beginning of 2023 and throughout Tuesday it remained above $21,000.
The increase helped boost the overall value of digital assets to almost 1 billion dollars, according to CoinMarketCap, a level below which it fell in November following the turmoil surrounding the fall of FTX.
Others cryptocurrencies also increased of value, with the index of the Top 100 increasing by around 2.5%. Shares of some cryptocurrency-related companies post even bigger gains, including Coinbase Global Inc.
Riot Platforms Inc. and Marathon Digital Holdings Inc. is the first one they are likely to jump on,” wrote Noelle Acheson, author of the newsletter Crypto Is Macro Now.
It's a promising start to the year for Bitcoin, that in 2022 had fallen 64% in its second worst annual performance in history.
And the surge has renewed previously fading enthusiasm, with fans tweeting excitedly for fear of missing out on new profits, even as the industry continues to struggle with one of its darkest episodes amid the empire's collapse. FTX and other negative news.
Bitcoin has “astronomically” surpassed its 50-day moving average and is trading above its 200-day moving average, according to Bespoke Investment Group. So far, it has recovered most of the decline since prices dropped following the fall of FTX.
The coin's 14-day Relative Strength Index currently stands at 91. Readings below 30 are generally interpreted as oversold signals and readings above 70 as overbought signals.
The founder of CappThesis, Frank Cappelleri, says that overbought conditions have been bullish for bitcoin throughout its history. He noted that the last two times the relative strength index was above 80 was after a previous significant drop.
The crack of 2022 It will no doubt surprise many institutional investors that some of the companies in cryptocurrencyThe most sought after will burst with shame.
Volume traded in market The fall of cryptocurrency It means that any factor can cause its volatility. According to CoinMarketCap, the trading volume was close to the $48 billion in the last 24 hours.
However, Bespoke notes that despite no volume last week, there has been an increase of around 1.5 times on average over the last 50 days.
But why this renewed enthusiasm for Bitcoin? Many analysts, including Adam Farthing, director of risk management at B2C2, they point to a short sale, more like an open sale, that peaked or peaked since July 2021 when Bitcoinn reached a minimum close to $30 000. "the consequence." “The main reason for the rapid moves appears to be selling,” Farthing said this week.
Meanwhile, other risk assets rose earlier in the year, with the S&P 500 up more than 4 1TP3Q and the Nasdaq 100 up nearly 6 % so far in 2023.
Crypto analysts say this is one of the main reasons why digital assets managed to recover.
Tony Ross, chief investment officer at Wilmington Trust Investment Advisors, said of digital assets: “We are seeing a change in risk. Bitcoin is now the best home in a comparatively poor area. Over time", said.