Bitcoin’s Resurgence Could Prove Lasting

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Bitcoin, the largest digital currency by market capitalization, is bouncing back nicely to start 2023 after a terrible run last year, and as it hovers around $23,000 some market watchers are wondering if the latest run is real and whether whether or not it marks the dawn of a new bull market.

Using the strict definition of a bull market, bitcoin is already here, having surged around 40% from its November lows, but there is still a mountain to climb for the cryptocurrency to approach its all-time highs of around $69,000. Whether those levels will flirt this year remains to be seen, but some market watchers are pointing to a shift in sentiment that could benefit bitcoin and other digital assets.

2023 ushered in a sea change in sentiment. Investors are bullish on slowing inflation and that interest rates may even start falling this year as traders take turns offering risk-sensitive assets like cryptos and stocks, Jack Denton reported. for Barons.

Improving sentiment coupled with the all-important factor of bullish price action adds good vibes to the technical picture for bitcoin, potentially pointing to more upside.

This bullish attitude has now translated into bull market techniques, according to CryptoQuant. The tell is in the group’s proprietary PnL Index, which combines three different metrics into a single indicator of Bitcoin’s market value. That figure has now topped its 365-day moving average, according to Barrons.

There are other points in favor of bitcoins. First, digital currency bounces are often large in percentage terms, as evidenced by the current one. Second, bitcoin bull markets have historically been long.

This does not mean that the environment is 100% perfect for bitcoin. A recent survey by crypto education website Coin Kickoff indicated that international investors, primarily retailers, rank bitcoin as their most hated cryptocurrency. Conversely, they are passionate about Ethereum and Solana.

While Ethereum’s value has been subject to the same volatility and price decline as the rest of the industry in 2022, there is renewed optimism about the second largest cryptocurrency. In October 2022, it completed The Merge, replacing the digital machinery at the heart of its blockchain to consume 99.9% less energy. Although there is far from a consensus, many in the cryptocurrency industry believe that Ethereum and its versatility with DeFi projects has the potential to one day overtake Bitcoin as the most important coin. and the most valuable, according to the research company.

For more news, insights and analysis, visit the Crypto Channel.

Opinions and predictions expressed herein are solely those of Tom Lydon and may not materialize. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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